Gold is poised for its best times since 2010 thanks to lower rates and global tensions
1 January 08:49
Gold prices rose on Tuesday, the last trading day of a record year that led to the metal’s best annual performance since 2010. This was reported by Reuters, according to "Komersant Ukrainian".
Gold reached its record highs due to demand from central banks, geopolitical tensions and monetary easing by major global banks.
On Tuesday morning, spot gold rose 0.3% to $2614.23 per ounce. Gold futures in the United States added 0.3% to $ 2626.20.
“2024 has been a stellar year for gold, and much of this growth has been driven by the expected transition to a lower interest rate environment,” said Tim Waterer, chief market analyst at KCM Trade.
Remaining one of the best-performing assets in 2024, bullion is up more than 26% year-to-date, the biggest annual jump since 2010.
The market is now awaiting a new set of catalysts, including a slew of US economic data due next week.
In 2025, “the US interest rate outlook will remain the main driver of the gold price. Trump’s trade policy will be key in shaping the inflation picture, the trajectory of the Federal Reserve’s interest rate and, in turn, the gold price,” said Tim Waterer, chief market analyst at KCM Trade.
According to Anika Gupta, Director of Macroeconomic Research at WisdomTree, “Gold is likely to remain supportive in 2025 due to rising geopolitical risks, trade tensions, and continued demand from central banks, offsetting the negative effects of a stronger US dollar and a slower pace of Fed easing.”
By the way, silver is also preparing for its best year since 2020. So far, it has gained more than 21% in price.
