Gold prices edged higher on Monday, December 30, as investors awaited more clarity on US interest rate policies and potential tariff moves under President-elect Donald Trump.
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These factors are expected to influence gold’s direction into 2025.
Spot gold increased by 0.1%, reaching $2,622.74 per ounce.
On the other hand, gold futures also rose by 0.1%, trading at $2,635.10 per ounce.
In India, gold prices followed a similar pattern.
The cost of 22-carat gold rose by ₹150, bringing the price to ₹7,150 per gram.
For 24-carat gold, the price stood at ₹7,800 per gram.
The dollar index remained stable, which helped prevent significant price fluctuations in gold, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
“Geopolitical tensions have driven gold’s rise this year and will likely continue into 2025, especially with Trump’s return to office,” he added.
Market sentiment and economic factors
As markets prepare for a potential shift in US policies, including tariffs, deregulation, and tax changes, these developments are expected to shape market sentiment and gold prices.
This uncertainty has contributed to gold’s stability in recent months.
The metal has gained more than 27% so far this year, reaching an all-time high of $2,790.15 per ounce on October 31, driven by the US Federal Reserve’s interest rate cuts and rising geopolitical risks.
Despite the potential for fewer rate cuts in 2025, gold remains a favored hedge against geopolitical and inflationary pressures.
Higher interest rates tend to reduce the appeal of non-yielding assets like gold, but geopolitical instability has kept demand for the precious metal strong.
Outlook for gold
Renisha Chainani, Head of Research at Augmont – Gold For All, expressed optimism for gold.
Looking ahead, she expects gold prices to rebound to ₹76,000-₹78,500 per 10 grams. However, if prices fall below ₹76,000 per 10 grams, the next target would be ₹75,000 per 10 grams.
Rahul Kalantri, VP Commodities at Mehta Equities, identified support at $2,610-$2,591 per ounce and resistance at $2,640-$2,657 per ounce.
In the Indian market, Kalantri suggested gold has support at ₹76,320-₹76,100 per 10 grams and resistance at ₹76,710-₹76,880 per 10 grams.
Investment outlook
As a hedge against inflation and political instability, gold continues to attract investor interest. With the year’s end approaching, investors may face more price fluctuations.
However, in the longer term, gold is expected to maintain its role as a safe haven for those seeking stability amid global uncertainty.