Gold prices rise

Gold prices rose today, Thursday, continuing the impressive performance recorded last 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 increased in spot transactions by 0.39 percent, recording $2,634.15 per ounce by 0255 GMT. US gold futures rose 0.2 percent to $2,646.30 an ounce.

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

The dollar index fell by 0.1 percent, which makes dollar-denominated bullion more attractive to holders of other currencies.

“Gold appears to be consolidating in a narrow range, which usually indicates that the market is ready to take off,” said Kyle Rodda, financial markets analyst at Capital.com. “I suspect that this takeoff will be to the upside.”

He added that gold is likely to continue rising (in 2025), driven by geopolitical risks and expectations of rising government debt and the resulting deep fiscal deficit under the Trump administration, despite potential challenges from slower interest rate cuts and a stronger dollar.

The market is now awaiting a new set of catalysts, including a series of US economic data scheduled for release next week that could impact interest rate forecasts for 2025, and Trump’s tariff policies.

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 two percent.

Gold is seen as a hedge against inflation, especially in times of geopolitical and economic uncertainty.

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

As for other precious metals, silver increased 1.5 percent to $29.29 per ounce, palladium rose 0.9 percent, recording $912.26 per ounce, and platinum rose 0.7 percent, recording $917.14 per ounce.

Silver in 2024 recorded its best performance since 2020, while platinum and palladium declined.