Next year's upward momentum for Gold mainly depends on the purchasing power of central banks and whether the buying power in the Asia-Pacific region is strong. The World Gold Council believes that gold prices may primarily fluctuate next year.
According to the Zhichun Financial APP, the World Gold Council has released its outlook for gold prices in 2025. The council believes that next year, even though the USA will continue to cut interest rates, it may face competition from Stocks and Real Estate (indicating that the general market still underestimates the investment market crisis next year), and the upward momentum for Gold will mainly depend on the purchasing power of central banks and whether the buying power in the Asia-Pacific region is strong. The council believes that gold prices may primarily fluctuate next year.
Refinitiv reported that last week, the price of gold in USD was initially strong, breaking through the 2700 mark again, but with the USA revealing a year-on-year increase of 3% in the November Producer Price Index, the market quickly lowered its predictions for next year's rate. Bank of America predicts that the Federal Reserve will only cut interest rates twice next year; Wells Fargo & Co even speculates on just one cut. As of last Friday, the market expected the probability of USA interest rates being reduced to 3.25-3.5% by the end of 2025 dropped from 17.1% two weeks ago to 8.1% last Friday; meanwhile, the probability of rates at 4.00-4.25% rose from 15.1% to 26.6%.
