Today market analysis on behalf of Ramy Zeytouni market analyst at Ramy Zeytouni llc
24th January 2025
Gold edged lower after approaching its previous highs. The market continues to react to the changes in the US dollar and Treasury yields and could see some volatility. Yields have rebounded this week and could weigh on the precious metal.
Despite the decline, gold could remain well-supported by several key factors. Its role as a traditional safe-haven asset continues to draw interest amid ongoing uncertainties surrounding President Donald Trump’s tariff policies. The latter have heightened concerns about potential trade wars, economic growth, and inflationary pressures. Moreover, sustained central bank purchases over the past two years have provided a strong foundation for gold, with expectations of continued institutional demand.
At the same time, the global monetary policy environment continues to influence gold’s outlook. On Wednesday, European Central Bank (ECB) policymakers endorsed additional rate cuts, making next week’s reduction almost certain, a development that could support gold prices. In contrast, the Federal Reserve is expected to maintain its current benchmark interest rate at the upcoming meeting, retaining a hawkish stance due to the potentially inflationary effects of Trump’s policies, which suggests rates may remain elevated for longer and could weigh on gold.