Gold prices saw a modest increase on Monday as investors awaited further insights into the U.S. Federal Reserve’s interest rate decisions and President-elect Donald Trump’s upcoming tariff policies, which could influence the metal’s outlook for 2025.
As of 0506 GMT, spot gold rose 0.1% to $2,622.74 per ounce, while U.S. gold futures gained 0.1% to $2,635.10, according to Reuters.
Kelvin Wong, senior market analyst for Asia Pacific at OANDA, noted that the dollar index remained largely unchanged, which helped keep gold’s price relatively steady. “The market is in a holding pattern as investors look to the future direction of U.S. policy,” he said.
With President-elect Trump poised to return to the White House in January, markets are bracing for significant policy shifts, including potential tariffs, deregulation, and tax reforms. These changes could have a lasting impact on gold prices throughout 2025.
Gold has seen a strong performance this year, gaining over 27% so far. It hit an all-time high of $2,790.15 on October 31, driven by aggressive rate cuts from the Federal Reserve, including a large 100 basis point reduction in September, along with growing geopolitical tensions. Gold is traditionally viewed as a safe haven during times of geopolitical instability and inflation.
The U.S. central bank has already reduced interest rates by 100 basis points in 2024 but has signaled that rate cuts may be less aggressive in 2025. Higher interest rates tend to make gold, a non-yielding asset, less attractive to investors.
In other precious metals, spot silver gained 0.2%, reaching $29.44 per ounce, while platinum increased by 0.3% to $922.30, recovering from a three-month low reached on Friday. Palladium also climbed 0.4% to $915.19.
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