Gold Steadies in Holiday Lull as Markets Eye 2025 Fed Moves
Gold prices steadied in holiday-thinned trade on Tuesday as investors looked ahead to the U.S. Federal Reserve’s interest rate strategy and President-elect Donald Trump’s tariff policies that could shape the metal's trajectory next year.
Spot gold was little changed at $2,616.31 per ounce, as of 9:27 a.m. ET (1426 GMT). U.S. gold futures were steady at $2,631.60.
Gold had a stellar year in 2024, poised for its best performance since 2010 with a 27% gain.
Bullion is considered a safe investment during economic and geopolitical turmoil.
Analysts had predicted that successive record highs in 2024 would set the stage for a similar rally in 2025, fueled by sustained central bank buying, rising geopolitical tensions, and Fed rate cuts.
With Trump set to return to the White House in January, U.S. investors are bracing for significant policy shifts in 2025, including higher trade tariffs, deregulation, and tax changes, all of which could have inflationary implications.
While the Fed aggressively cut rates in September, November, and December, it has signaled fewer cuts in 2025 due to stubbornly high inflation.
Higher rates increase the opportunity cost of holding the non-yielding bullion.
Spot silver was unchanged at $29.66 per ounce, platinum rose 0.2% to $941.25, while palladium gained 0.9% to $938.20.
Source : Reuters
