Gold gains on safe-haven demand amid global uncertainties

GOLD climbed on Monday (Dec 30) as conflict in the Middle East lifted bullion’s safe-haven appeal, while investors looked forward to US Federal Reserve’s interest rate outlook and Donald Trump’s tariff policies, which could shape the metal’s 2025 trajectory.

Spot gold rose 0.1 per cent to US$2,622.93 per ounce, as at 0040 GMT. US gold futures gained 0.2 per cent to US$2,637.30.

On the geopolitical front, Israeli strikes killed at least 25 people, medics and the civil emergency service said. Elsewhere, South Korea’s parliament impeached acting President Han Duck-soo on Friday, less than two weeks after suspending President Yoon Suk-yeol.

Gold is considered a hedge against geopolitical turmoil and inflation, but higher rates reduce the non-yielding asset’s appeal.

The bullion has gained over 27 per cent so far this year and scaled an all-time peak of US$2,790.15 on Oct 31, fuelled by significant Fed reductions, including a jumbo cut in September, and heightened geopolitical uncertainties.

Trading activity is expected to remain quiet at the year-end.

Markets are now preparing for major policy shifts, including tariffs, deregulation and tax changes, in 2025 as president-elect Donald Trump returns to the White House in January.

After aggressively cutting rates in September and November, the US central bank persisted with easing in December but hinted at fewer reductions in 2025.

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03 per cent to 872.52 tonnes on Friday.

SEE ALSO

Gold set for weekly gain; focus on incoming Trump administration, US Federal Reserve’s 2025 path

Gold discounts in India widened to a nearly three-month high last week as rising prices dampened demand, while China shifted to premium as consumers began stocking up for the upcoming Chinese New Year celebrations.

Spot silver added 0.1 per cent to US$29.41 per ounce, platinum gained 0.4 per cent to US$922.80 and palladium climbed 0.5 per cent to US$915.69. REUTERS