Gold Prices Move Little as Trading Volumes Remain Thin on New Year Eve
Gold price (XAU/USD) holds ground after two days of losses amid thin trading volume on Monday. Gold prices are set to finish the year with an impressive 27% gain, representing their strongest annual performance since 2010. This rally has been driven by central bank purchases, rising geopolitical tensions, and monetary easing policies implemented by major central banks.
The yellow bullion, Gold, remained relatively stable as investors reacted to indications of a hawkish Federal Reserve (Fed). Robust labor market data, reflected in payroll counts, and persistent inflation prompted FOMC members to project fewer rate cuts by the Fed in 2025. This outlook led to a slight decline in non-yielding Gold prices during Q4.
However, the safe-haven Gold gains support as markets anticipate signals regarding the United States (US) economy under the incoming Trump administration and the Federal Reserve’s (Fed) interest rate outlook for 2025. The demand for the yellow metal could increase as potential tariffs and trade policies by the incoming Trump administration could trigger trade conflicts, increasing the risk aversion sentiment.
Source : FXStreet