Gold prices rose on Tuesday, capping a record-breaking year with the strongest performance since 2010, supported by central bank buying, geopolitical tensions, and monetary policy easing.
Spot gold gained 0.3% to $2,614.23/ounce by 08:07 GMT, while U.S. gold futures were up 0.3% to $2,626.20.
Bullion surged over 26% in 2024. Its price hit a record of $2,790.15 on October 31.
Markets now await U.S. economic data next week, which could shape the Federal Reserve’s 2025 rate outlook, alongside President-elect Donald Trump's tariff policies.
The Fed lowered its interest rates in September, November, and December but signalled fewer cuts for 2025. Other central banks also hinted at a cautious approach to rate decreases for next year.
Gold is anticipated to stay strong in 2025, supported by geopolitical risks, trade tensions, and central bank demand, despite pressure from a stronger USD and slower Fed policy easing. The metal is viewed as a hedge against inflation and uncertainty, though high interest rates reduce its appeal.