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Gold Price Outlook: Will Geopolitical Tensions and Fed Policies Push It Higher in 2025?

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Lilly Mwogah Fact check, Reviewer
    Summary:
  • Gold prices steady at $2,628.30, poised for weekly gains amid global uncertainty. Explore key technical levels, geopolitical drivers.

Gold prices are holding firm as the year nears its end, trading at $2,628.30 per ounce as of December 27, 2024. Despite easing slightly during Friday’s session, the precious metal is on track for a weekly gain of 0.2%, fueled by safe-haven demand amid geopolitical tensions and economic uncertainty.

Key Technical Levels for Gold

The daily chart shows critical levels that could define gold’s short-term movement:

  • Immediate Resistance:
    • $2,686 – A breakout here could see gold retesting its October high.
    • $2,791 – The record high set on October 31, 2024, remains the key upside target.
  • Immediate Support:
    • $2,600 – A key psychological level and immediate floor.
    • $2,555 – A breach below this could signal further downside.
  • Long-term Support:
    • $2,472 – A crucial level if bearish momentum intensifies.
Gold chart Analysis

Safe-Haven Demand Drives Gold

Gold remains favored due to increased geopolitical risks, especially the persistent tensions in the Middle East and Eastern Europe. Airstrikes in Gaza and Yemen, coupled with the intensifying conflict in Ukraine, have maintained a consistent demand for gold as protection against uncertainty.

Additionally, the Federal Reserve’s easing of interest rates throughout 2024 has bolstered gold’s appeal, with investors eyeing its performance as the dollar gains strength. The metal has increased by 27% so far this year, bolstered by these factors and intensified speculation regarding U.S. policy adjustments as Donald Trump gets ready to take office in January 2025.

Outlook for Gold

As Gold continues to be a preferred safe-haven asset, its performance in the short term will rely on geopolitical events and central bank strategies. A move beyond $2,686 might pave the way for a surge toward its all-time peak, with $2,600 acting as an important support level to monitor.
Spot silver and platinum also remain in focus, with both metals tracking weekly gains, signaling broader strength in the precious metals market.