Lagos — Gold prices rose on Thursday, after a volatile end of the year. The asset found support throughout 2024 thanks to expectations of decreasing interest rates, strong central bank buying activity, and heightened geopolitical tensions that pushed demand for the precious metal and its prices to record highs.
Market participants are currently maintaining a focus on the U.S. interest rate trajectory, particularly following Chair Jerome Powell’s recent signals of increased caution regarding the pace of monetary policy easing. These considerations come amid renewed concerns about inflation.
Looking ahead, gold’s outlook appears promising, supported by several fundamental factors. These include ongoing geopolitical uncertainties, expectations of continued central bank purchases, and the metal’s traditional role as a safe-haven asset during periods of market uncertainty. While potential headwinds such as dollar strength and the pace of interest rate adjustments may present challenges, the overall market sentiment suggests sustained support for gold prices, particularly as investors seek to balance their portfolios against various economic and political risks.
*Joseph Dahrieh, Managing Principal at Tickmill
