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Gold has always been treasured as aninvestment.
But when times are uncertain, it gets even more appealing.
And when demand is high, its price is high, too.
Its value can also be influenced by the market, the global economy and world events.
So what does the near future have in store for gold?
We can get some clues if we take a look at how gold performed in 2024.
This was good news for investors who wanted a safe place to put their money.
Strong demand meant gold prices stayed high.
Central banks bought large amounts of gold,and individual investors also turned to it to protect their money.
High Inflation Meant Higher Gold Prices
Usually, when inflation increases, people start buying gold.
Thats because it keeps its value better than cash.
Whats interesting is that gold prices have stayed high, even as inflation has started to slow.
General uncertainty about the direction the economy is going might be whats keeping gold prices from dropping.
Look Out for Falling Interest Rates
Gold prices are also affected by interest rates.
In 2024, interest rates mostly either went up or stayed stable.
This kept a limit on how high the price of gold could climb.
If rates drop sharply in 2025, gold prices could drop, too.
There might be small changes, but for now, investors still see gold as a safe investment.
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