Gold thrives in low-interest-rate environments and benefits from economic instability. Traders are positioning themselves ahead of crucial U.S. economic data, including job openings, ADP employment figures, and the Fed’s December meeting minutes. These indicators will shape expectations for the central bank’s policy in 2025.
In 2024, gold posted a stellar performance with over a 27% annual gain—its best year since 2010. This surge was driven by rate cut expectations, central-bank buying, and geopolitical risks. Analysts suggest that a price target of $3,000 per ounce remains plausible, with corrections early in the year potentially setting the stage for further upward momentum.
The unwinding of the “Trump trade,” which initially boosted the U.S. dollar and equities, could favor gold. Trump’s proposed tariffs and protectionist policies may introduce inflationary pressures and trigger trade disputes, both of which are historically bullish for gold.
Technical Analysis: Gold (XAU/USD)