Synopsis
Gold started 2025 positively after a strong performance in 2024. Investors are looking for indications on the U.S. Federal Reserve’s interest rate plans and President-elect Donald Trump’s tariff policies. Markets expect a cautious approach from the Fed amid high inflation. Key economic data are awaited to provide further direction. Precious metals showed mixed performance in 2024. ETMarkets.com Gold started 2025 positively after a strong performance in 2024. Gold kicked off the New Year on a positive note after a stellar 2024, as market participants waited for more clues on the U.S. Federal Reserve’s interest rate outlook and President-elect Donald Trump’s tariff policies.
FUNDAMENTALS * Spot gold was steady at $2,625.48 per ounce, as of 0014 GMT on Thursday.
* Bullion emerged as one of the top-performing assets in 2024, surging more than 27% in its largest annual gain since 2010.
* The rally was fuelled by central bank buying, geopolitical tensions, and monetary policy easing by major global banks.
* U.S. gold futures fell 0.1% to $2,639.60 on Thursday.
* Traders anticipate the Fed to adopt a slow and cautious approach to further rate cuts in 2025, as inflation continues to exceed the central bank’s 2% annual target.
* According to the CME’s FedWatch Tool, markets are pricing in an 11.2% chance of a U.S. rate cut in January, with an 88.8% chance of a status quo.
* Gold is seen as a hedge against inflation and geopolitical and economic uncertainty, but elevated interest rates diminish its appeal as a non-yielding asset.
* Traders await initial U.S. jobless claims data due later in the day, along with next week’s U.S. job openings data, ADP employment report, Fed meeting minutes, and employment report for further direction.
* Spot silver ro
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