Gold prices are still on track to hit $3,000 an ounce next year, but investors will need to remain patient as the current consolidation period is likely to last into the first half of next year. Right now, gold is just stuck in an environment where we don't have anything tangible to get investors back into the market. Gold will face significant headwinds in the new year as demand from the Asian giant remains sluggish and Western investors face potential rising bond yields and a stronger U.S. dollar. The Trump administration is most likely to pursue a policy mix of stronger growth, higher inflation, higher interest rates and a stronger dollar, which is likely to limit investors' appetite to increase gold purchases in the short term . The bank's fixed income strategists expect potential trade tariffs and other U.S.-first economic policies could prompt the Fed to slow its easing cycle in 2025 Despite the challenges, gold and silver will find solid support in the new year, driven by economic uncertainty and geopolitical turmoil spurring safe-haven demand. In its outlook, the bank expects gold prices to average around $2,750 an ounce in 2025, unchanged from its previous forecast. While the U.S. economy may show resilience next year, the U.S. government's ballooning debt is a major factor that could support gold prices. We remain concerned about the uncertain macro environment and fiscal outlook. U.S. debt as a share of the economy is expected to reach a record high within three years of the next presidential term. Central banks remain major holders of government bonds and the fiscal outlook provides strong incentives to further diversify reserves and increase holdings of gold, which has been a popular trade. Although investment demand may struggle in the first half of 2025 as markets adjust to Fed monetary policy It is difficult to overstate the risk that growing U.S. deficits pose to the ongoing de-dollarization trend.