City Index analyst sees gold prices consolidating in the second half of 2025

According to Fawad Razaqzada, market analyst at City Index and FOREX.com, gold prices are likely to consolidate in the second half of 2025. This will be due to a decline in demand for safe haven assets.

As the analyst believes, the long-term uptrend in gold will continue in the second half of this year, but its pace may slow down. Gold was heavily overbought at the beginning of the year, and now consolidation seems healthy and necessary, Razaqzada says.

He also doesn't rule out the possibility of a correction in gold prices during the second half of the year, given the return of investors' appetite for risk. The expert drew attention to the growth of the S&P 500 to new record highs. Such dynamics reflects weakening of investors' concerns about the financial health of the United States.

However, with the next downgrade of America's credit rating, risk assets may get in trouble, as Razaqzada warned. This would lead to an improvement in gold's outlook. As for central bank purchases, some slowdown is expected. Nevertheless, their supportive effect on gold prices will remain, the analyst adds.