Toronto, Canada – Gold has emerged as one of the top-performing commodities this year. Hussein Allidina, Managing Director and Head of Commodities at TD Asset Management, shares his insights on the potential for the precious metal to continue its upward trajectory in the coming year.

In a recent discussion, Allidina pointed out that while gold had experienced a slight retreat from its record highs post the US election, there are still factors at play that could drive its value higher in 2025. Allidina emphasized the structural dynamics at play in the global economy that support the case for gold’s continued growth.

One of the key factors contributing to Allidina’s bullish outlook on gold is the disparity in gold reserves held by central banks in emerging markets compared to those in OECD countries. He highlighted how central banks in developed nations like the US, Germany, and France possess a significantly higher percentage of their reserves in gold compared to their counterparts in emerging markets, who tend to hold more fiat currencies.

Allidina noted a trend of diversification away from traditional reserve currencies like US dollars and euros towards gold in emerging markets. This shift in demand for gold, driven by central banks seeking to reduce their exposure to fiat currencies, is expected to persist over the coming years, according to Allidina. He anticipates a gradual but steady increase in the allocation of gold in the reserves of emerging market central banks as they continue to rebalance their portfolios.

Overall, Allidina remains optimistic about gold’s prospects for growth in the medium to long term, citing ongoing structural factors that support its value. With a strategic focus on the evolving dynamics of global reserve holdings and central bank policies, Allidina sees a positive outlook for gold as a key commodity to watch in the years ahead.