Gold Steadies in Holiday Lull as Markets Await 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, which could shape the metal's trajectory next year.
Spot gold rose 0.1% to $2,616.88 per ounce as of 12:47 p.m. ET (1747 GMT). U.S. gold futures settled 0.3% up at $2,635.50.
Gold had a stellar year in 2024, poised for its best performance since 2010 with a 27% gain.
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 non-yielding bullion.
Spot silver was steady at $29.65 per ounce, platinum rose 0.4% to $942.50, and palladium gained 1.8% to $946.11.
Source : Reuters
