Gold Eases as US Dollar, Yields Eise in Thin Holiday Trading
Gold prices edged lower in subdued holiday-season trading on Monday, weighed down by a robust dollar and high U.S. Treasury yields as investors awaited clearer signals on the Federal Reserve's monetary policy for 2025.
Spot gold was down 0.4% at $2,611.17 per ounce, as of 1:42 p.m. ET (1842 GMT). U.S. gold futures settled 0.6% lower at $2,628.20.
The dollar index (.DXY), was up 0.4% against its rivals, hovering around a two-year high, reducing gold's appeal for holders of other currencies, while the benchmark U.S. 10-year yield also gained.
Despite the Fed’s 25-basis-point rate cut last week, its signal of fewer rate reductions in 2025 sent gold to its lowest levels since mid-November last week.
While non-yielding gold benefits in low-interest-rate environments, investors are recalibrating expectations for next year.
Gold has set multiple record highs this year, rising 27% so far to mark its best annual performance since 2010, driven by robust central bank buying, geopolitical tensions and monetary policy easing by major banks.
President-elect Donald Trump takes office on Jan. 20.
Gold, often considered a safe-haven asset, typically performs well during economic uncertainties.
Spot silver rose 0.5% at $29.67 per ounce and platinum climbed 1.2% to $937.65, while palladium gained 1.1% to $931.10.
Source : Reuters
