POUND
In 2024, GBP/USD fell 1% despite strong fluctuations. The pair rallied from 1.23 to 1.34 midyear but dropped 5% in Q4 due to USD strength. But pound outperformed other major currencies, supported by the BoE’s slower rate cuts.
In 2025, UK growth may fall short of the BoE’s 1.5% forecast due to trade uncertainties and tighter fiscal policies. Weaker labour market may prompt deeper BoE rate cuts, pressuring GBP
Meanwhile, US economy remains robust, with GDP forecast at 2.4% supporting a cautious Fed easing cycle. Political shifts, including Trump’s fiscal policies, could bring GBP/USD to face downward pressure in the first half of 2025.
Google CEO Sundar Pichai emphasized the high stakes for 2025, highlighting competition, regulatory pressures, and rapid advancements in AI. Pichai urging employees to focus on scaling Google’s Gemini app and solving real user problems. Gemini, seen as a key growth driver, aims to rival competitors like OpenAI’s ChatGPT.
Pichai acknowledged the challenges of catching up in AI but emphasized he outline plans to evolve Gemini into a universal assistant while keeping costs competitive.
GOLD
Gold price fell on Friday to 2,620 per ounce, pressured by higher US Treasury yields and a stronger dollar. Despite this dip, gold has surged 28% in 2024, hitting a record high of $2,790 in October, fuelled by Fed rate cuts and global tensions.
Analysts remain optimistic for 2025, expecting gold to benefit from continued central-bank buying, geopolitical uncertainty, and Trump’s return to office, which could introduce inflationary policies and trade conflicts. Some predict gold could surpass $3,000 by the summer, solidifying its role as a safe-haven asset.
Fullerton Markets Research Team
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