Gold prices stabilize due to holidays

Gold prices stabilized amid weak transactions today, due to the holidays, while investors wait to know the Federal Reserve’s (US central bank) strategy regarding interest rates and tariff policies of US President-elect Donald Trump, which may shape the course of the yellow metal next year.

By 1426 GMT, there was little change in gold in spot transactions and recorded $2,616.31 per ounce, and US gold futures settled at $2,631.60.

“The current trend appears to be driven primarily by declining liquidity,” said Zen Fawda, a market analyst at OANDA’s MarketPlus.

Gold has risen to record levels several times this year and has increased by about 27 percent so far to record its best annual performance since 2010.

Vawda added, “A similar rise may occur in 2025, but that will depend to a large extent on geopolitical developments… The price of gold is expected to reach about $2,800 per ounce, driven by ongoing risks and fears of a trade war.”

Analysts expect that the successive rise to record levels in 2024 will pave the way for a similar rise in 2025, supported by purchases carried out by central banks, escalating geopolitical tension, and the Federal Reserve cutting interest rates.

American investors are preparing for many changes that will severely affect the markets in 2025 with Trump’s return to the White House in January, such as tariffs, the elimination of some regulatory restrictions, and changing tax policy, which will have an impact on inflation.

As for other precious metals, silver settled in spot transactions at $29.66 per ounce, and palladium rose 0.9 percent to $938.20. Platinum increased 0.2 percent to $941.25.