Market analysts predict continued support for gold through 2025, citing higher demand from central banks and a potential boost from gradual rate cuts by the Federal Reserve. Some forecasts suggest gold could reach $3,000 an ounce as global monetary easing and geopolitical risks continue.
Silver’s gains are dampened by economic concerns
Silver (XAG/USD) is trading at $28.91, reflecting small losses, but maintaining its upward trajectory from 2024, where it gained almost 22%, its best year since 2020. Rising demand and easing global monetary policies supported the rally.
However, the outlook for silver is clouded by potential economic headwinds, including concerns about inflation and the impact of President-elect Trump’s proposed tariffs on the cost of living.
The Federal Reserve’s cautious stance on rate cuts in 2025 could also limit silver’s upside potential.
The US dollar remains subdued, trading around 108.00, as traders assess the Federal Reserve’s cautious approach to rate cuts. Treasury yields fell by about 2%, increasing pressure on the dollar.
The Fed’s latest guidance points to fewer rate cuts in 2025, adding to uncertainty about monetary policy under the incoming administration.