PRECIOUS-Gold flat; en route to best year in more than a decade

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Dec 31(Reuters) - Gold prices were unchanged in early Asian hours on Tuesday, the last trading day of an eventful year that saw the metal post its best annual performance in more than a decade. FUNDAMENTALS * Spot gold XAU= was flat at $2,606.07 per ounce, as of 0034 GMT. U.S. gold futures GCcv1 gained 0.1% to $2,619.90. * Trading activity is expected to remain quiet on the last day of the year. * Central bank buying, monetary policy easing and geopolitical tensions propelled gold to multiple record highs this year, putting the metal on track for its best performance since 2010, with an over 26% increase so far. * Federal Reserve's policymakers this month cut their rate forecast for 2025 to 50 basis points of cuts from 100 bps and Fed Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering inflation. * Bullion is considered a hedge against inflation and turmoil but high rates reduce the non-yielding asset's appeal. * The market now awaits a fresh set of catalysts, including a slew of U.S. economic data due next week that could influence the interest rate outlook for 2025, and President-elect Donald Trump's tariff policies. * Data expected next week includes job openings figures, ADP employment report, the Fed's December FOMC minutes and the U.S. employment report. * China's net gold imports via Hong Kong more than doubled from October in November, marking the highest level in seven months, Hong Kong Census and Statistics Department data showed. * Spot silver XAG= steadied at $28.94 per ounce and palladium XPD= added 0.1% to $901.49, while platinum XPT= shed 0.4% to $900.00. * Silver was headed for its best year since 2020, while platinum and palladium were set for annual losses. DATA/EVENTS (GMT) 0130 China NBS Manufacturing PMI Dec (Reporting by Rahul Paswan in Bengaluru; Editing by Sumana Nandy) (([email protected] ; If within U.S. +1 646 223 8780;;))
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Published Date
31 Dec 2024 at 8:59 AM
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Refinitiv
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