Gold Prices Hold Steady Amid Light Trading
Gold (XAU/USD) prices moved lower amid light trading after the Christmas break, trading near $2,630 during the Asian session on Friday.
However, the safe-haven asset could find upside support as markets anticipate signals on the US economy under the incoming Trump administration and the Federal Reserve’s (Fed) interest rate outlook for 2025.
Gold, a non-yielding asset, gained traction as modest US PCE inflation data challenged expectations of limited Fed rate cuts next year, hinting at the possibility of more cuts.
The safe-haven asset’s appeal was supported by rising geopolitical risks stemming from the prolonged Russia-Ukraine conflict and ongoing tensions in the Middle East. The precious metal is on track to close the year with an impressive 27% gain, marking its best year-to-date performance since 2010. The surge was driven by central bank buying, rising geopolitical uncertainties, and monetary easing by major central banks.
Source: FXStreet