Gold starts 2025 with positive performance.. eyes on future US interest rates

Gold started the new year’s transactions on a positive note after a great performance during the past year, amid anticipation of more indicators about the future of interest rates in the United States and the policies of US President-elect Donald Trump towards customs duties.

Gold settled in spot transactions today, Thursday, at $ 2,632.52 per ounce by 04:19 GMT. US gold futures fell 0.1% to $ 2,639.60 per ounce.

The yellow metal emerged as one of the best performing assets in 2024 after increasing by more than 27% in its largest annual gain since 2010, according to Reuters.

Traders expect the Federal Reserve (the US central bank) to adopt a slow and cautious approach regarding further interest rate cuts in 2025, with inflation continuing to exceed the central bank’s annual target of 2%.

Markets see just an 11.2% chance of a Fed rate cut in January versus an 88.8% chance of leaving the status quo, according to CME’s FedWatch tool. Elsewhere, silver rose 0.4% to $28.98 an ounce, palladium rose 0.6% to $909 an ounce and platinum lost 0.1% to $909.32 an ounce.