Gold prices rose by 0.25% in light holiday trading, driven by geopolitical tensions and the stabilization of the US dollar. Investors are also closely monitoring the Fed’s 2025 rate outlook and potential tariff policies under Donald Trump’s administration, both of which could influence gold’s trajectory.
Gold has surged 27% this year (the largest increase since 2010), supported by Fed rate cuts and ongoing geopolitical uncertainties.
Geopolitical tensions, particularly in the Middle East, are adding upward pressure on gold prices. Analysts note that if conflicts escalate, gold could gain further as investors seek safe-haven assets. Hamas and Israel exchanged blame on Wednesday for failing to finalize a ceasefire agreement, despite reporting progress in recent days.
Traders are also watching U.S. jobless claims data and anticipating significant policy shifts under Trump’s return to the White House, including tariffs and deregulation, which may shape gold’s outlook in 2025. Economists expect that last week initial jobless claims fell to 218 thousand from 220 thousand a week earlier.
Meanwhile, markets in Australia, New Zealand, Hong Kong and the eurozone are closed on Thursday for the Boxing Day public holiday.