empty
20.12.2024 01:04 PM
XAU/USD: Analysis and Forecast

This image is no longer relevant

The uncertainty surrounding 2025 may present interesting opportunities for prepared investors. The global economy teeters on a knife-edge, with various scenarios in play. Market volatility has surged as participants attempt to gauge the most probable outcomes for the future. The prior presidency of the now-elected President Donald Trump offers a potential roadmap for outcomes. However, today's conditions differ significantly from those of a few years ago.

Several economic fundamentals suggest a potential slowdown. Trump's proposal to extend and expand the 2017 tax cuts could stimulate the economy, but its long-term effects remain uncertain.

Despite the Federal Reserve signaling further rate cuts during its December monetary policy meeting, it hinted at only two potential rate reductions in 2025. This contrasts with the four cuts previously anticipated by September. The Fed's structure prevents it from making policy decisions based on speculative outcomes. Instead, it waits for legislative changes, assesses their impact, and then deliberates on whether these changes might fuel inflation. Simply put, the Fed reacts cautiously and slowly.

Given these market conditions, gold is likely to remain a focal point for investors as a hedge against uncertainty, even amidst heightened market volatility. It's safe to say that the yellow metal has not yet reached its peak price.

Beyond the U.S. government's economic proposals and central bank policies, gold remains an attractive asset. Analysts predict that U.S. government spending will continue to rise. By the end of this year, U.S. national debt is expected to exceed $36 trillion. While the U.S. dollar is unlikely to lose its status as the global reserve currency in the near term, the growing national debt will continue to drive the trend of de-dollarization.

This image is no longer relevant

Discussions with institutional investors reveal a growing interest in gold as a long-term investment. Despite anticipated volatility in the gold market next year, sustained interest is expected to keep the market healthy. Lower prices attract new buyers.

In conclusion, gold continues to prove its value as a hedge asset. With its historical role as a safeguard in times of uncertainty, it remains a solid investment choice.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

The Market Taken Hostage

Will the White House cross the Rubicon by initiating the dismissal of Jerome Powell from his position as Chair of the Federal Reserve? That would deal another blow to financial

Marek Petkovich 09:16 2025-04-18 UTC+2

Why Are Markets Frozen and What Are They Waiting For? (There is a possibility of continued Bitcoin and Ethereum consolidation in sideways ranges)

Today is Good Friday, a day Christians observe worldwide across all denominations. Market activity has noticeably decreased ahead of the Easter holiday, but this isn't the main reason for market

Pati Gani 09:00 2025-04-18 UTC+2

What to Pay Attention to on April 18? A Breakdown of Fundamental Events for Beginners

There are no macroeconomic events scheduled for Friday—not in the US, the Eurozone, Germany, or the UK. Therefore, even if the market were paying any attention to the macroeconomic backdrop

Paolo Greco 06:51 2025-04-18 UTC+2

GBP/USD Overview – April 18. Powell's Speech: Nothing Positive for the Dollar

The GBP/USD currency pair continued to trade relatively calmly on Thursday, showing only a minimal downward bias. We still can't classify the current movement as a "pullback" or "correction."

Paolo Greco 03:48 2025-04-18 UTC+2

EUR/USD Overview – April 18: The ECB Predictably Cut Rates, and the Market Predictably Ignored It

The EUR/USD currency pair spent most of the day moving sideways. When the European Central Bank meeting results were released, the market saw a small emotional reaction, but nothing fundamentally

Paolo Greco 03:48 2025-04-18 UTC+2

The Dollar Undid Everything Itself

He meant well, but it turned out the usual way. Donald Trump firmly believes that tariffs can replace income tax, generate massive revenue for the budget, and bring about

Marek Petkovich 03:39 2025-04-18 UTC+2

XAU/USD: Analysis and Forecast

Gold is undergoing a corrective pullback today as traders take profits following its recent surge to a new all-time high. This decline, although moderate, is driven by several factors, including

Irina Yanina 12:00 2025-04-17 UTC+2

EUR/USD: Analysis and Forecast

regarding upcoming changes in monetary policy from both the European Central Bank (ECB) and the U.S. Federal Reserve (Fed). Anticipation of a 25 basis point rate cut by the ECB—its

Irina Yanina 11:55 2025-04-17 UTC+2

Is the Euro Ready for Another Rate Cut?

We'll find out very soon whether the euro is once again prepared for the European Central Bank (ECB) to continue easing monetary policy. Today, the ECB is expected to lower

Jakub Novak 11:38 2025-04-17 UTC+2

Powell Sees a More Restrictive Fed Policy This Year

The euro showed little reaction, while the pound slipped slightly against the U.S. dollar following yesterday's speech by Federal Reserve Chairman Jerome Powell. According to Powell, the Fed is currently

Jakub Novak 11:34 2025-04-17 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.