Market analysts expect support for gold to continue in 2025, citing increased central bank demand and a potential boost from gradual Federal Reserve rate cuts. Some predict that gold prices could reach $3,000 an ounce as global monetary easing and geopolitical risks continue.
Silver gains constrained by economic concerns
Silver (XAG/USD) is trading at $28.91, reflecting some losses but maintaining its upward trajectory from 2024, up nearly 22%, its highest since 2020. Rising demand and easing global monetary policy supported the rally.
However, the outlook for silver is clouded by potential economic headwinds, including inflation concerns and the impact of President-elect Trump's proposed tariffs on the cost of living.
The Fed's cautious stance on lowering interest rates in 2025 could also limit silver's upside potential.
The dollar remains subdued, trading near 108.00, as traders appreciate the Federal Reserve's restrained approach to rate cuts. Treasury yields fell by about 2%, putting pressure on the dollar.
The Fed's latest guidance suggests the rate cuts will be smaller in 2025, contributing to monetary policy uncertainty under the next administration.
