Gold is expected to trend higher despite the Federal Reserve's hawkish stance following its December meeting, according to Citi's latest analysis. The Fed's decision to lower interest rates for the third time in 2024, coupled with a hawkish outlook projecting only two 25 basis point cuts for 2025, has created a complex macroeconomic environment. Citi notes that "Gold generally trades higher on skips regardless of if the easing cycle continues," suggesting resilience in the yellow metal even as US rates rise and the dollar strengthens. The report highlights that gold's performance is supported by central bank demand, with historical data showing an uptrend during pauses in easing cycles. This outlook aligns with Citi's bullish positioning on gold, as the metal tends to perform well whether the Fed's actions signal a pause or the end of an easing cycle.