Gold Prices Rose After US Fed Rate Cut: Check Gold Outlook For 2025

On Thursday, December 19, 2024, Gold prices surged over 1% recovering from a one-month low, driven by short-covering as traders awaited critical U.S. economic data for further insights into the US Fed interest rate decision.

By 02:51 GMT, spot gold had risen 0.8%, reaching $2,607.88 per ounce, while U.S. gold futures eased slightly, dropping 1.2% to $2,620.60.

In India, 22-carat gold was priced between ₹71,510 and ₹71,660 per 10 grams, while 24-carat gold ranged from ₹78,160 to ₹83,649 per 10 grams.

Factors Impacting Gold Prices

• Gold’s rebound is attributed to short-term speculators buying the dip. Market participants are closely monitoring U.S. GDP and jobless claims data.
• Earlier this week, gold prices dipped following the Federal Reserve’s 25-basis-point rate cut and signals of fewer rate reductions through 2025.

Gold Outlook 2025

Gold is on track for its best annual performance in more than a decade, up 28% through November. This surge has been driven by central bank and investor purchases, which have more than offset weaker consumer demand. Asian investors have remained active, while lower yields and a weakening U.S. dollar in Q3 boosted Western investment.

Market expectations for 2025, based on GDP, yields, and inflation forecasts, point to positive but more modest growth for gold. Potential upside could come from stronger-than-expected central bank demand or a rapid deterioration in financial conditions, leading to a flight to quality into gold.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.