Gold edges up as focus shifts to incoming Trump administration

Bengaluru — Gold prices ticked up on Monday, while investors awaited more clues on the US Federal Reserve’s interest rate outlook and president-elect Donald Trump’s tariff policies, which could shape the metal’s 2025 trajectory.

Spot gold was up 0.1% at $2,622.74 an ounce as of 5.06am GMT [7.06am]. US gold futures gained 0.1% to $2,635.10.

The dollar index has been rather flat, helping gold maintain its sideways movement, said Kelvin Wong, Oanda’s senior market analyst for Asia Pacific.

“Geopolitical tensions have been a major factor in gold’s uptrend this year and are still likely to be a part of the narrative in 2025, especially with Trump entering the picture,” he said.

“From a short-term perspective, until the start of the new year, we are likely to see this kind of lethargic sideways price movement,” Wong said.

Markets are now preparing for major US policy shifts, including potential tariffs, deregulation and tax changes, in 2025 once Trump returns to the White House in January.

Bullion prices have gained more than 27% so far this year and scaled an all-time peak of $2,790.15 on October 31, fuelled by significant Fed rate easing, including a jumbo cut in September, along with heightened geopolitical uncertainties.

Gold is considered a hedge against geopolitical turmoil and inflation.

The US central bank has reduced rates by 100 basis points this year but has hinted at fewer cuts in 2025. Higher rates reduce the non-yielding asset’s appeal.

Spot silver added 0.2% to $29.44 an ounce, platinum edged higher by 0.3% to $922.30, having hit an over three-month low on Friday.

Palladium climbed 0.4% to $915.19.

Reuters