What Factors Could Push Gold Prices Lower?

1. A Stronger U.S. Dollar If the U.S. economy shows resilience and the Federal Reserve delays interest rate cuts, the dollar may strengthen. A stronger dollar typically reduces global demand for gold, making it less appealing to investors. However, this scenario is uncertain in early 2025 due to potential disruptions from Donald Trump’s tariff policies. 2. Declining Inflation If inflation continues to ease, investors may shift their focus toward higher-yielding assets, reducing demand for gold as a safe-haven investment. 3. Profit-Taking and Speculative Selling Following a strong rally, some traders may choose to secure profits. This can trigger short-term pullbacks or corrections in gold prices.