By Rahul Paswan and Swati Verma
(Reuters) – Gold costs gained on Tuesday, the final buying and selling day of a record-breaking 12 months that drove the metallic to its greatest annual efficiency since 2010 on strong central financial institution shopping for, geopolitical tensions, and financial coverage easing by main international banks.
rose 0.3% to $2,614.23 per ounce, as of 0807 GMT. U.S. added 0.3% to $2,626.20.
“Gold enjoyed a stellar year in 2024 and much of that move higher was predicated on the expected transition towards a lower interest rate environment,” mentioned Tim Waterer, chief market analyst at KCM Commerce.
As one of many best-performing belongings of 2024, bullion has gained greater than 26% year-to-date, the most important annual leap since 2010, and final scaled a document excessive of $2,790.15 on Oct. 31 after a sequence of record-breaking rallies all year long.
The market now awaits a contemporary set of catalysts, together with a slew of U.S. financial information due subsequent week that might affect the Federal Reserve’s rate of interest outlook for 2025, and President-elect Donald Trump’s tariff insurance policies.
For 2025, “the U.S. interest rate outlook will remain a primary driver of the gold price. Trump’s trade policies will be key in shaping the inflationary picture, the Fed’s interest rate trajectory, and in turn, the gold price,” Waterer mentioned.
The Fed aggressively lower charges in September, November and December, however of their final assembly flagged fewer fee cuts for 2025. Different main central banks additionally signalled warning over their 2025 trajectory.
“Gold is likely to remain supported in 2025 by rising geopolitical risks, trade tensions and ongoing demand from central banks offsetting the headwinds from the stronger U.S. dollar and a slower pace of easing by the Fed,” mentioned Aneeka Gupta, director of macroeconomic analysis at WisdomTree.
Bullion is taken into account a hedge towards inflation and turmoil however excessive charges cut back the non-yielding asset’s enchantment.
Spot silver steadied at $28.94 per ounce, whereas palladium gained 0.5% to $904.96 and platinum rose 1% to $912.77.
Silver is headed for its greatest 12 months since 2020 and has added over 21% to this point. Platinum and palladium are set for annual losses, dipping about 7% and 17%, respectively.
