Global investment banks expect gold to extend its record-breaking price rally into 2025 and China's stock market to edge up the next year, according to their latest forecasts on major asset classes including stocks, bonds, commodities.
Goldman Sachs expects the central banks of emerging and developed economies to continue their accommodative monetary policies into 2025.
The investment bank anticipates an average interest rate reduction of 116 basis points in developed economies and 114 basis points in emerging markets over the next year.
In terms of commodities, Goldman Sachs is optimistic about gold prices, forecasting that they could reach 3,000 U.S. dollars per ounce by 2025 mainly due to increased central bank purchases and anticipated rate cuts by the U.S. Federal Reserve.
J.P. Morgan Chase shares a positive outlook on gold prices, but sets a lower target of 2,850 U.S. dollars per ounce.
Goldman Sachs is also bullish on Chinese equities, maintaining an "overweight" position on stocks listed in the Chinese mainland and the Hong Kong Special Administrative Region.
It expects the MSCI China Index to rise by 15 percent and the China Securities Index 300 by 13 percent in 2025.
J.P. Morgan Asset Management forecasts an average annual return of 7.8 percent for Chinese equities over the next 10 to 15 years, driven by China's focus on enhancing productive forces.
Int'l investment banks bullish on gold, Chinese equities in 2025
