Eyes on Fed and Trump’s 2025 policies as gold set for weekly rise
Bullion up 0.3% so far this week with silver, platinum and palladium on track for weekly gains
27 December 2024 - 09:07
byDaksh Grover
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Bengalaru — Gold edged lower in light trading on Friday and was poised for a weekly gain, as investors awaited cues on the US economy to anticipate the Federal Reserve’s interest rate path for 2025 and the incoming Donald Trump administration’s policies.
Spot gold fell 0.2% to $2,630.28 an ounce, as of 2.21am GMT (4.22am). Bullion gained 0.3% so far this week.
US gold futures eased 0.2% to $2,649.10.
“We are in a holiday lull so price action is a little dull, with moves perhaps exaggerated by thin liquidity,” said Kyle Rodda, financial market analyst at Capital.com.
“The (rate-cut) decision shook the markets’ confidence in the number of cuts likely to come next year and that acted as a headwind for gold.”
US jobless claims fell to a one-month low last week, data showed, indicating a strong labour market and potential pressure on the Fed to maintain interest rates.
After aggressively cutting rates in September and November, the Fed persisted with easing in December but hinted at fewer reductions in 2025.
Gold prices have surged nearly 28% this year, reaching a record high of $2,790.15 on October 31, driven by Fed’s substantial rate cuts and escalating geopolitical tensions.
On the geopolitical level, Israel struck multiple Houthi targets in Yemen on Thursday, including the Sanaa International Airport, resulting in at least six deaths according to the Houthi media.
Gold is considered a hedge against geopolitical turmoil and inflation, but higher rates reduce the non-yielding asset’s appeal.
Markets are preparing for major policy shifts, including tariffs, deregulation and tax changes, in 2025 as Donald Trump returns to the White House in January.
Spot silver fell 0.2% to $29.75 an ounce and palladium shed 0.3% to $922.58, while platinum added 0.1% to $936.85. All three metals were headed for weekly gains.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Eyes on Fed and Trump’s 2025 policies as gold set for weekly rise
Bullion up 0.3% so far this week with silver, platinum and palladium on track for weekly gains
Bengalaru — Gold edged lower in light trading on Friday and was poised for a weekly gain, as investors awaited cues on the US economy to anticipate the Federal Reserve’s interest rate path for 2025 and the incoming Donald Trump administration’s policies.
Spot gold fell 0.2% to $2,630.28 an ounce, as of 2.21am GMT (4.22am). Bullion gained 0.3% so far this week.
US gold futures eased 0.2% to $2,649.10.
“We are in a holiday lull so price action is a little dull, with moves perhaps exaggerated by thin liquidity,” said Kyle Rodda, financial market analyst at Capital.com.
“The (rate-cut) decision shook the markets’ confidence in the number of cuts likely to come next year and that acted as a headwind for gold.”
US jobless claims fell to a one-month low last week, data showed, indicating a strong labour market and potential pressure on the Fed to maintain interest rates.
After aggressively cutting rates in September and November, the Fed persisted with easing in December but hinted at fewer reductions in 2025.
Gold prices have surged nearly 28% this year, reaching a record high of $2,790.15 on October 31, driven by Fed’s substantial rate cuts and escalating geopolitical tensions.
On the geopolitical level, Israel struck multiple Houthi targets in Yemen on Thursday, including the Sanaa International Airport, resulting in at least six deaths according to the Houthi media.
Gold is considered a hedge against geopolitical turmoil and inflation, but higher rates reduce the non-yielding asset’s appeal.
Markets are preparing for major policy shifts, including tariffs, deregulation and tax changes, in 2025 as Donald Trump returns to the White House in January.
Spot silver fell 0.2% to $29.75 an ounce and palladium shed 0.3% to $922.58, while platinum added 0.1% to $936.85. All three metals were headed for weekly gains.
Reuters
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