Optimism for higher gold prices in 2025, but what are the risks?

A note from Fidelity takes a look at gold after a banner year in 2024:

• Gold prices climbing approximately 27% in 2024
• largest annual increase in 14 years
• factors contributing included interest rate cuts, persistent geopolitical tensions, and favorable supply-and-demand conditions

Looking ahead, Fidelity say gold bulls are optimistic that a weakening U.S. dollar and declining bond yields could drive prices even higher

• potential risks to this outlook include the possibility of interest rates remaining elevated for longer than anticipated, a de-escalation of regional conflicts, and a shift toward riskier investments in the market

This article was written by Eamonn Sheridan at www.forexlive.com.