Gold prices witness little change
Date
12/31/2024 5:07:05 AM
(MENAFN) Gold prices saw little change on Tuesday, marking the final trading day of a year in which the precious metal experienced its best performance since 2010. This surge was driven by significant central bank purchases, geopolitical uncertainties, and easing monetary policies by major global central banks. Spot gold prices dropped slightly by 0.1% to $2,603.69 an ounce, while U.S. gold futures also fell by 0.1% to $2,615.50. Gold prices have reached record highs in the past six months, with an overall increase of around 26% this year, the largest annual rise since 2010. The price peaked at $2,790.15 on October 31.
Looking ahead to 2025, analysts predict that gold prices will remain influenced by U.S. interest rate movements. President-elect Donald Trump's trade policies are expected to significantly impact inflation, interest rates, and the price of gold. In recent months, the Federal Reserve made substantial rate cuts in September, November, and December, but its latest meeting indicated that smaller rate cuts are expected in 2025. Other central banks have also taken a cautious approach to future rate cuts.
Annika Gupta, director of macroeconomic research at WisdomTree, suggested that gold could continue to perform well in 2025, driven by rising geopolitical risks, trade tensions, and persistent central bank demand, which may counterbalance the strengthening of the U.S. dollar and slower rate cuts. Meanwhile, spot silver declined by 0.5% to $28.80 an ounce, palladium fell by 0.3% to $898.39, and platinum increased by 0.4% to $907.05. Silver had its strongest year since 2020, rising over 21%, while platinum and palladium saw losses of about 8% and 18%, respectively.
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