As the Federal Reserve prepares to shorten its easing cycle in 2025, the gold market is hovering above $2600 per ounce. However, a fund manager pointed out that the Federal Reserve will be very cautious in dealing with the new government and stubborn inflation next year.

Julia Khandoshko, CEO of European brokerage firm Mind Money, recently reiterated that gold prices will rise above $3000 per ounce, partly due to increasing uncertainty surrounding US monetary policy.

Although gold prices have been struggling in recent weeks due to stubborn inflation, Khandashko stated that the actions of the Federal Reserve may be limited.

Last week, the Federal Reserve stated in its latest economic forecast that it expects to only cut interest rates twice next year. Khandashko speculated in her report that the Federal Reserve may be more dovish next year than expected.

In her report, she said, "The Federal Reserve seems to be becoming a hostage to Trump's policies. In the past, Powell's office has been cautious and avoided making harsh decisions, believing that key interest rates are a tool rather than the ultimate goal. But under the leadership of the new government, the market and the logic of the latest economic policies require a rapid rate cut

She added, "The Federal Reserve will not be able to take actions that go against the new government. For gold, such dynamics are extremely profitable, as high inflation and low interest rates create ideal conditions for its value growth. Therefore, it is expected that interest in gold will only increase, and gold prices will continue to rise

At the same time, an increasing number of economists point out that as the US economy and labor market continue to slow down, even if inflation remains high, the Federal Reserve is facing a difficult environment.

Analysts point out that a stagflation environment will be favorable for gold, as rising inflation in a slow growth environment will lower real returns.