GOLD kicked off the New Year on a positive note after a stellar 2024, as market participants waited for more clues on the US Federal Reserve’s interest rate outlook and president-elect Donald Trump’s tariff policies.
Spot gold was steady at US$2,625.48 per ounce, as at 0014 GMT on Thursday (Jan 2).
Bullion emerged as one of the top-performing assets in 2024, surging more than 27 per cent in its largest annual gain since 2010.
The rally was fuelled by central bank buying, geopolitical tensions, and monetary policy easing by major global banks.
US gold futures fell 0.1 per cent to US$2,639.60 on Thursday.
Traders anticipate the Fed to adopt a slow and cautious approach to further rate cuts in 2025, as inflation continues to exceed the central bank’s 2 per cent annual target.
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According to the CME’s FedWatch Tool, markets are pricing in an 11.2 per cent chance of a US rate cut in January, with an 88.8 per cent chance of a status quo.
Gold is seen as a hedge against inflation and geopolitical and economic uncertainty, but elevated interest rates diminish its appeal as a non-yielding asset.
Traders await initial US jobless claims data due later in the day, along with next week’s US job openings data, ADP employment report, Fed meeting minutes, and employment report for further direction.
Spot silver rose 0.4 per cent to US$28.98 per ounce and palladium added 0.6 per cent to US$909.00, while platinum shed 0.1 per cent to US$909.32.
Silver rose nearly 22 per cent in 2024 to post its best year since 2020, while platinum and palladium ended the previous year with losses, shedding more than 8 per cent and 17 per cent, respectively. REUTERS
