PT Rifan Financindo Berjangka – Gold Holds After 27% Annual Gain as Traders Mull US Rate Path
Gold opened the New Year steady after notching its biggest annual gain since 2010, with traders assessing prospects for a slower pace of monetary easing by the Federal Reserve in 2025.
Bullion was trading near $2,625 an ounce following its 27% gain in 2024, which was driven by the Fed’s cutting cycle, sustained haven demand and a wave of purchases by central banks.
Investors are now focused on the interest-rate path in the US, after Chair Jerome Powell last month signaled greater caution over how quickly the central bank can continue reducing borrowing costs amid renewed concerns about inflation. Lower rates are typically positive for bullion, which doesn’t pay interest.
Key economic data due later this week, including US jobless claims and manufacturing reports, will be closely watched for clues on the Fed’s easing trajectory.
Spot gold was little changed at $2,625.42 an ounce at 8:11 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver, palladium and platinum all rose.
Source : Bloomberg
Perfect Storm Fuels Gold’s Best Yearly Performance Since 2010 as Trump 2.0 Looms
Gold prices were poised for an annual surge of over 27%, their biggest yearly rise since 2010, driven by safe-haven demand and central banks’ rate cuts, although the mood could turn more cautious depending on policy shifts under a second Donald Trump presidency.
Spot gold rose 0.7% to $2,624.24 per ounce as of 02:31 p.m. EST (1931 GMT) on Tuesday and U.S. gold futures settled 0.9% higher at $2,641.00.
Strong central bank purchases, geopolitical uncertainties and monetary policy easing powered safe-haven gold’s record-breaking rally in 2024, driving it to an all-time high of $2,790.15 on Oct. 31.
Analysts expected the factors supporting bullion in 2024 to persist into 2025, though they also cited potential headwinds from Trump policies that could stoke inflation and slow Federal Reserve rate cuts.
Bullion thrives in low-interest-rate environments, acting as a hedge against economic and geopolitical risks. The rally lost momentum in November as the dollar strengthened on “Trump euphoria.”
Elsewhere, spot silver fell 0.3% to $28.87 per ounce, palladium rose 0.9% to $908.67, and platinum was down 0.1% to $903.15.
Silver is headed for its best year since 2020, having added nearly 22% so far. Platinum and palladium are set for annual losses and have dipped over 8% and 17%, respectively.
Citi’s Mulqueen sees silver prices rising to $36 per ounce in response to a large market deficit and to Fed rate cuts through 2025. Citing headwinds for industrial demand growth in 2025, he did not expect it to outperform gold. PT Rifan Financindo Berjangka.
Source : Reuters