Gold prices close to achieving strongest annual performance in over 10 years
Date
12/31/2024 2:22:08 AM
(MENAFN) Gold prices remained largely stable on Tuesday, marking the final trading session of a notable year in which the precious metal achieved its strongest annual performance in over a decade. Spot gold edged up by 0.1 percent to USD2,608.09 an ounce as of 0217 GMT, while U.S. gold futures also rose 0.1 percent to USD2,620.60. With the year drawing to a close, trading activity is expected to remain subdued.
The yellow metal's stellar performance in 2024 has been driven largely by expectations of a shift toward a lower interest rate environment, according to Tim Waterer, chief market analyst at KCM Trade. He noted that this anticipated monetary policy easing played a significant role in gold’s remarkable rise throughout the year. The metal has been a favored asset amid changing economic conditions and shifting central bank policies.
Several factors contributed to gold reaching multiple record highs this year, including significant central bank purchases, easing monetary policies, and ongoing geopolitical tensions. These combined forces propelled gold prices to climb more than 26 percent year-to-date, positioning 2024 as gold’s best-performing year since 2010. The metal’s robust gains have reinforced its role as a safe haven for investors during uncertain times.
Looking ahead, the market is now focused on potential catalysts, including a range of U.S. economic data set to be released next week that may shape interest rate expectations for 2025. Additionally, the incoming administration of President-elect Donald Trump is expected to influence economic conditions, particularly through trade and tariff policies. “For 2025, U.S. interest rate expectations will continue to play a pivotal role in driving gold prices,” Waterer stated, emphasizing that Trump’s trade policies will significantly impact inflation, the Federal Reserve’s monetary strategy, and, consequently, the price of gold.
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