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Gold Outlook 2025: Navigating Rates, Risk And Growth


Published on 2024-12-13 11:41:19 - Seeking Alpha
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  • As we look forward, all eyes are focused on what Trump's second term may mean for the global economy. Thrill-seeking investors may benefit from an early wave of risk-on flows, but potential trade wars and inflationary forces may spill over into an expected subpar economic growth.

The article "Gold Outlook 2025: Navigating Rates, Risk, and Growth" from Seeking Alpha discusses the future prospects of gold as an investment, focusing on the interplay between interest rates, economic risk, and growth. It highlights that gold's performance is closely tied to real interest rates; when rates are low or negative, gold tends to perform well as it has no yield, making it an attractive hedge against inflation and currency devaluation. The article predicts that with potential economic slowdowns or recessions, central banks might lower rates, which could boost gold prices. Additionally, geopolitical risks and a potential increase in inflation could further drive demand for gold as a safe-haven asset. However, if economic growth remains robust and inflation is kept in check, gold might face headwinds from rising real yields. The piece also touches on the impact of a stronger or weaker dollar, with a weaker dollar typically supporting higher gold prices. Overall, the outlook for gold remains cautiously optimistic, with the metal expected to benefit from any economic turbulence or monetary policy shifts towards easing.

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4744085-gold-outlook-2025-navigating-rates-risk-growth ]
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