Gold Stalls, But Yearly Gains Remain Impressive

31 Dec 2024 , 11:14 AM

On Tuesday, the final trading day of an extraordinary year that saw the metal score its greatest yearly performance in over a decade, gold prices remained constant in early Asian hours.

Spot gold remained steady at $2,606.07 an ounce. At $2,619.90, U.S. gold futures increased by 0.1%.

The final day of the year is anticipated to see little trading activity.

With a surge of more than 26% so far this year, gold is on track for its strongest performance since 2010, driven to several record highs by central bank purchases, monetary policy easing, and geopolitical worries.

Fed Chair Jerome Powell stated that additional borrowing cost reductions now depend on ongoing progress in reducing inflation. This month, the Fed’s policymakers lowered their rate projection for 2025 from 100 basis points to 50 basis points.

Although bullion is regarded as a buffer against inflation and unrest, its appeal is diminished by high interest rates.

The market is now awaiting a new set of catalysts, such as President-elect Donald Trump’s tariff policy and a plethora of U.S. economic data that is coming next week and might impact the interest rate projection for 2025.

The Fed’s December FOMC minutes, the ADP employment report, the U.S. employment report, and job openings data are among the data anticipated next week.

According to figures from the Hong Kong Census and Statistics Department, China’s net gold imports through Hong Kong more than quadrupled from October to November, reaching their highest level in seven months.

Palladium increased by 0.1% to $901.49, spot silver remained steady at $28.94 per ounce, and platinum decreased by 0.4% to $900.00.

Platinum and palladium were expected to experience yearly losses, while silver was expected to have its best year since 2020.

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