The Fed's hawkish signal sparked gold jitters — but analysts see support for the precious metal in 2025

The U.S. Federal Reserve surprised markets with a more hawkish outlook on interest rates for 2025, causing gold prices to drop, but analysts predict solid support for the precious metal due to factors like central bank demand and safe-haven appeal. The Fed’s updated “dot plot” now indicates two rate cuts next year, raising concerns about potential inflation from President-elect Donald Trump’s proposed trade tariffs, leading to a stronger U.S. dollar and lower gold prices. Despite the downward pressure, continued central bank gold purchases, particularly from China, are expected to keep gold prices near record highs in the coming year.

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