Gold begins 2025 with a positive performance…and all eyes are on the Federal Reserve and Trump’s policies

Gold began the New Year’s transactions on a positive note after a wonderful performance over the past year, amid anticipation of more indicators about the future of interest rates in the United States and the policies of US President-elect Donald Trump towards customs duties.

Gold settled in spot transactions today, Thursday, at $2,632.52 per ounce by 04:19 GMT. US gold futures fell 0.1% to $2,639.60 an ounce.

The yellow metal emerged as one of the best performing assets in 2024 after it increased by more than 27% in its largest annual gain since 2010, according to Reuters.

Traders expect the Federal Reserve (the US central bank) to adopt a slow and cautious approach regarding further cutting interest rates in 2025, with inflation continuing to exceed the central bank’s annual target of 2%.

According to the CME FeedWatch tool, the markets see only an 11.2% chance that the US Federal Reserve will cut interest rates in January, compared to an 88.8% chance of maintaining the status quo.

As for other precious metals, silver increased 0.4% to $28.98 per ounce, palladium rose 0.6%, recording $909 per ounce, while platinum lost 0.1%, recording $909.32 per ounce.

Silver rose about 22% during 2024 to record its best annual performance since 2020, while platinum and palladium ended last year with losses of more than 8 and 17%, respectively.