Gold Prices Rise Amid Global Uncertainty

30 Dec 2024 , 11:00 AM

Gold rose as the Middle East crisis diminished the appeal of gold as a safe haven, and investors anticipated the U.S. Federal Reserve’s interest rate forecast and Donald Trump’s tariff policies, which might influence the metal’s trajectory in 2025.

Spot gold increased 0.1% to $2,622.93 an ounce. At $2,637.30, U.S. gold futures increased by 0.2%.

According to medical professionals and the civil emergency service, Israeli strikes killed at least 25 persons on the geopolitical front. Less than two weeks after suspending President Yoon Suk Yeol, South Korea’s parliament impeached interim President Han Duck-soo on Friday.

Due to increased geopolitical uncertainty and major Fed reductions, including a jumbo drop in September, the bullion has risen more than 27% so far this year and reached an all-time high of $2,790.15 on October 31.

It is anticipated that there would be little trading activity at the end of the year.

With President-elect Donald Trump taking office again in January, markets are already bracing for significant policy changes in 2025, such as tariffs, deregulation, and tax adjustments.

The U.S. central bank continued to ease in December after making hefty rate cuts in September and November, but it made hints about fewer rate cuts in 2025.

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