Gold Climbs to Two-Week High on Safe-Haven Demand, Weaker Yields
Gold hit a two-week high on Thursday, fueled by safe-haven buying and a dip in U.S. Treasury yields, while the market took out positions ahead of the Federal Reserve's rate outlook and President-elect Donald Trump's looming trade tariffs.
Spot gold rose 1% to $2,649.73 an ounce by 9:47 a.m. ET (1446 GMT), hitting its highest since Dec.18. U.S. gold futures gained 0.8% to $2,663.20.
Bullion thrives in low-interest-rate environments and acts as a hedge against economic and geopolitical risks.
Russia launched a drone strike on Kyiv early Wednesday, causing damage in at least two districts, while the Israeli military struck a suburb of Gaza City.
Traders await next week's U.S. job openings data, the ADP employment report, the Fed's December FOMC meeting minutes, and the U.S. employment report to gauge the interest rate outlook for 2025.
In 2024, rate cuts, central bank buying, and geopolitical tensions drove gold to record highs with a an over 27% annual gain, its best since 2010.
Trump’s upcoming inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected to be inflationary, potentially sparking trade wars.
Among other metals, spot silver rose 2.1% to $29.48 an ounce, palladium gained 1.3% to $922.04 and platinum climbed 2.1% at $922.85.
Source : Reuters
