empty
02.01.2025 01:27 PM
What Awaits Precious Metals in 2025?

This image is no longer relevant

In 2025, many developed countries will continue lowering interest rates, but the pace of these reductions will depend on regional and economic conditions. In the United States, the Federal Reserve plans to act more cautiously than other central banks. The Fed forecasts only two rate cuts this year, fewer than previously expected. This cautious approach stems from the relatively stable U.S. economy and persistent inflation.

Most major banks have lowered their interest rate expectations. Fixed-income analysts at Bank of America agree with the Fed's forecast of two rate cuts. Banking holding company Wells Fargo is slightly more conservative, predicting only one rate cut this year. However, Canadian multinational investment bank TD Securities predicts four rate cuts, estimating that the federal funds rate will drop to 3.50% by year-end. Meanwhile, U.S.-based investment company BlackRock believes Treasury yields will rise by year-end, as the Fed is unlikely to aggressively cut rates.

Not all analysts, however, are confident that the U.S. economy can withstand geopolitical uncertainties and the unintended consequences of policies proposed by President-elect Donald Trump.

This image is no longer relevant

Ahead of his inauguration, Trump threatened to impose trade tariffs on nearly all major global economies. These tariffs would promote domestic production and support the U.S. dollar, but the policy comes with costs and could exacerbate existing inflationary pressures. In short, Trump's presidency implies higher U.S. inflation and weaker global growth. However, if Trump's tariff threats remain just that—threats—the world's economic growth rate, considering high U.S. inflation and migration policies, might slightly underperform its 3% trend.

Banking experts predict that if Trump's tariff plan materializes, its effects will only begin to be felt in Q3 2025. Regarding the Fed's monetary policy and its impact on precious metals, many analysts expect shifting rate expectations to create short-term obstacles and volatility for precious metals. Limited Fed rate cuts will support the U.S. dollar, posing another significant challenge for precious metals.

Nevertheless, analysts in commodities remain confident that gold will surpass $3,000 per ounce by year-end.

Additionally, the correlation between gold and Treasury yields, and even the U.S. dollar, has broken down as central banks continue purchasing large volumes of precious metals for reserves. Trump's tariffs and geopolitical uncertainties are likely to amplify the ongoing dedollarization trend among central banks in emerging markets.

In conclusion, the global economy is entering a period of heightened uncertainty, requiring flexibility from central banks. Geopolitical risks may pose challenges to global development. Despite short-term hurdles, the precious metals market will continue to attract investments, especially amid dedollarization and geopolitical instability.

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
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Gold is attracting some sellers for the second day in a row, despite the absence of any clear fundamental catalyst for a decline. Most likely, this is due to trading

Irina Yanina 11:50 2025-04-04 UTC+2

Old market rules broken

Someone is not telling the truth. Donald Trump insists that everything is going well and that the markets will flourish. But the S&P 500 just posted its worst 10-week start

Marek Petkovich 11:10 2025-04-04 UTC+2

The Growth of the Gold Price Has Stopped. What Is the Reason? (There Is a Possibility of a Local Corrective Pullback in #SPX and Bitcoin)

The global market crash triggered by the announcement of sweeping tariffs personally introduced by the U.S. President continues into Asian trading sessions. While the decline has slowed, there is still

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

What to Pay Attention to on April 4? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic events are scheduled for Friday, but they may trigger a new storm. The market has not yet recovered from Wednesday evening's events when Trump imposed trade

Paolo Greco 07:29 2025-04-04 UTC+2

GBP/USD Pair Overview – April 4: Does Anyone Still Care About Nonfarm Payrolls and Unemployment?

The GBP/USD currency pair posted a 300-pip upward move from Wednesday evening through Thursday. Given the current situation, this may not end the dollar's decline. To be honest, the fall

Paolo Greco 06:07 2025-04-04 UTC+2

EUR/USD Pair Overview – 4: Trump's Tariffs Crash the Dollar Once Again

The EUR/USD currency pair gained nearly 300 pips between Wednesday and Thursday. We saw a repeat of the situation in early March when the U.S. dollar fell by 400 pips

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

The Dollar Shot Itself in the Foot

Don't create a problem for someone else; you might get caught in it yourself. Donald Trump sought to leverage the United States' leading position in the global economy by announcing

Marek Petkovich 00:50 2025-04-04 UTC+2

EUR/USD. Nonfarm Payrolls and the Greenback

Can strong Nonfarm Payrolls help the dollar? This question is complicated, as the market is currently too shaken by Donald Trump's new tariffs. Traditional fundamental factors have been pushed into

Irina Manzenko 00:46 2025-04-04 UTC+2

USD/JPY – Analysis and Forecast

The Japanese yen is showing strong gains amid broad-based selling of the U.S. dollar, keeping the USD/JPY pair below the key psychological level of 147.00. Investor concerns over the potential

Irina Yanina 18:22 2025-04-03 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.