Gold Edges Up on Holiday Trading

26 Dec 2024 , 10:42 AM

As investors concentrated on the U.S. Federal Reserve’s interest rate policy and expected tariff policies under President-elect Donald Trump, gold edged higher on Thursday in holiday-thinned trading.

These factors could have an impact on the metal’s trajectory in the upcoming year. Spot gold increased by 0.2% to $2,619.59 an ounce.

Due to substantial Fed rate cuts, including a big drop in September, and increased geopolitical uncertainty, gold has risen almost 27% so far this year, reaching several record highs.

At $2,637.10, U.S. gold futures were stable.

As year-end draws near, trading volumes will probably decline on a week with fewer holidays.

As Trump returns to the White House in January, markets are anticipating significant policy changes, such as tariffs, deregulation, and tax changes in 2025, while also keeping an eye on unemployment claims data that is due later in the day.

Despite reports of progress in recent days, Israel and the Palestinian militant group Hamas exchanged blame on Wednesday for their inability to reach a ceasefire accord.

Gold tends to prosper in an atmosphere with low interest rates and is regarded as a secure investment choice during times of economic and geopolitical unrest.

In other places, Citing growing political unpredictability and other economic difficulties, South Korea’s central bank announced on Wednesday that it plans to further reduce the benchmark interest rate in 2025.

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