Gold prices continue to rally in the early days of 2025 as traders wait to hear Donald Trump’s policies, which will shape the outlook for the economy and interest rates for the new year.

Gold is up more than 27% through 2024, as major Fed rate cuts and escalating geopolitical tensions brought one record after another to its price.

In the first session of 2025, gold rose 0.4% to $2,633.38 an ounce, while futures were 0.2% higher at $2,645.30.

“Gold appears to be consolidating in a narrow range, which often signals a market that is ready to break out. I suspect the breakout will be bullish,” said an analyst at Capital.com.

Gold is forecast to remain bullish in 2025 on geopolitical risks and expectations of higher government debt due to the Trump administration’s deficit, despite potential challenges from slower Fed rate cuts and a stronger dollar.

Within the next week, the announcement of US economic data is expected, which could affect the outlook for interest rates for 2025 and Trump’s tariff policies.

Donald Trump will be sworn in as president of the United States on January 20.

Traders expect the Fed to take a slow and cautious approach to further rate cuts in 2025 as inflation continues to exceed its 2% target.

Gold, considered a safe-haven investment in times of geopolitical and economic uncertainty, tends to be negatively affected by high interest rates.