Gold prices remained stable on December 24, 2024, with spot gold at $2,616.76 per ounce and futures at $2,632.20. This steadiness comes as investors anticipate the U.S. Federal Reserve's interest rate strategy for 2025 and the economic implications of Donald Trump's upcoming policies.
Gold has experienced a remarkable year, surging 27%, marking its best performance since 2010, driven by central bank purchases and geopolitical tensions. The Federal Reserve's recent rate cuts have supported gold prices by reducing the opportunity cost of holding the non-yielding asset. However, indications suggest a slower pace of rate reductions in 2025, with markets expecting only 35 basis points of easing.
Analysts like Han Tan from Exinity Group predict gold could reach $3,000 in 2025, contingent on its role as an inflation hedge amid potential inflationary pressures from Trump's policies. Trump's return to the White House is expected to introduce changes in tariffs and deregulation, contributing to market volatility.
The appeal of gold as a safe haven during economic instability remains strong, although rising interest rates could diminish its attractiveness. Other precious metals saw mixed movements, with silver dipping to $29.61 per ounce, platinum at $937.95, and palladium rising to $944.78.