Gold Glimmering: Safe Haven Demand Boosts Outlook

3 Jan 2025 , 10:08 AM

With attention on the Fed’s rate outlook and U.S. President-elect Trump’s proposed trade tariffs, gold prices increased marginally on Friday, building on a 1% gain from the previous session.

Spot gold was up 0.1% to $2,660.25 an ounce, just above the two-week low that was reached on Thursday. Bullion had gained roughly 1.5% so far this week.

At $2,673.90, U.S. gold futures increased by 0.2%.

Bullion surged more than 27% in 2024, its biggest annual gain since 2010, making it one of the best-performing assets.

According to Gaza officials, Israeli bombings killed at least 68 Palestinians in Gaza, including the head of the Hamas-run police force, his deputy, and nine displaced people.

Moreover, early on Wednesday, Russia launched a drone hit on Kyiv, the capital of Ukraine, damaging at least two districts.

Gold is a hedge against geopolitical and economic uncertainty and thrives in low-interest-rate circumstances.

U.S. new jobless claims dropped to an eight-month low last week, indicating few layoffs as 2024 drew to a close, according to data released Thursday that reaffirmed the labor market’s strength.

The U.S. central bank cut interest rates for the third time in a row last month, but it now only anticipates two drops in 2025, citing the durability of the labor market and economy.

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