Gold Prices Climb This Week

27 Dec 2024 , 09:44 AM

As investors awaited clues about the U.S. economy under the new Donald Trump administration and the Federal Reserve’s interest rate strategy for 2025, gold prices remained unchanged on Friday but were expected to rise weekly.

Spot gold was steady at $2,632.79 an ounce. Bullion was up by 0.45% this week. At $2,653.00, U.S. gold futures were essentially unchanged.

As the end of the year draws near, trading activity is anticipated to be muted.

According to data released on Thursday, Americans’ new unemployment benefit applications dropped to a one-month low last week, indicating a strong labor market and probably continuing to put pressure on the Fed to retain interest rates.

The Fed continued to ease in December after making substantial rate cuts in September and November, but it made hints about fewer rate cuts in 2025.

On a geopolitical level, Israel reportedly killed at least six people Thursday when it hit several locations connected to the Iran-aligned Houthi movement in Yemen, including the Sanaa International Airport.

Although gold is regarded as a hedge against inflation and geopolitical unrest, rising interest rates lessen the allure of the non-yielding asset.

Due to increased geopolitical uncertainty and large Fed reductions, including a jumbo cut in September, the metal has risen 28% so far this year and reached an all-time high of $2,790.15 on October 31.

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