Market analysts predict continued support for gold in 2025, citing higher central bank demand and a potential boost from gradual Federal Reserve rate cuts. Some forecasts suggest gold could reach $3,000 per ounce as global monetary easing and geopolitical risks persist.
Silver’s Gains Tempered by Economic Concerns
Silver (XAG/USD) is trading at $28.91, reflecting minor losses but maintaining its upward trajectory from 2024, where it gained nearly 22%, its best year since 2020. Rising demand and easing global monetary policies underpinned 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 living costs.
The Federal Reserve’s cautious stance on rate cuts in 2025 could also limit silver’s upside potential.
The US Dollar remains subdued, trading near 108.00, as traders assess the Federal Reserve’s restrained approach to rate cuts. Treasury bond yields dropped by about 2%, adding pressure on the dollar.
The Fed’s latest guidance suggests fewer rate cuts in 2025, contributing to uncertainty in monetary policy under the incoming administration.
Source: Gold (XAU) Silver (XAG) Daily Forecast: Easing Policies Boost Metals, $2,643 and $29.50
