Gold set for weekly gain; focus on incoming Trump administration, US Federal Reserve’s 2025 path
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GOLD prices were trading flat on Friday (Dec 27), but were set for a weekly rise, as markets awaited signals on the US economy under the incoming Donald Trump administration and the US Federal Reserve’s interest rate strategy for 2025.
Spot gold was flat at US$2,632.79 per ounce, as at 0024 GMT. Bullion gained 0.45 per cent so far this week.
US gold futures were nearly unchanged at US$2,653.00.
Trading activity is expected to be subdued as the year-end approaches.
Data on Thursday showed that the number of Americans filing new applications for jobless benefits fell last week to a one-month low, suggesting a resilient labour market and likely maintaining pressure on the Fed to hold interest rates steady.
After aggressively cutting rates in September and November, the Fed persisted with easing in December but hinted at fewer reductions in 2025.
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On the geopolitical level, Israel struck multiple targets linked to the Iran-aligned Houthi movement in Yemen on Thursday, including the Sanaa International Airport, and Houthi media said at least six people were killed.
Gold is considered a hedge against geopolitical turmoil and inflation, but higher rates reduce the non-yielding asset’s appeal.
The metal has gained 28 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.
Markets are preparing for major policy shifts, including tariffs, deregulation and tax changes, in 2025 as Trump returns to the White House in January.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.13 per cent to 872.80 tonnes on Thursday.
Spot silver was steady at US$29.80 per ounce, platinum added 0.4 per cent to US$939.69 and palladium rose 0.19 per cent to US$926.64. REUTERS
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