Gold prices remained stable after a remarkable 27% annual gain, with investors closely watching the Federal Reserve’s potential moves on interest rates. The precious metal’s robust performance reflects its appeal as a hedge against inflation and economic uncertainty, bolstered by fluctuating economic data and geopolitical tensions.
Traders are now gauging how upcoming Federal Reserve meetings might shape monetary policy in 2025. Higher interest rates could dampen gold’s allure, as they often strengthen the dollar and raise bond yields. Conversely, any signals of easing policy could sustain the metal’s upward momentum. This balance has kept markets cautiously optimistic, with gold hovering near its highest levels in over a year.
The outlook for gold hinges on broader economic trends, but its significant gains last year underscore its enduring appeal in turbulent markets.
