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* Bullion rose over 27% in 2024 * Gold likely to remain bullish in 2025 - analyst * Traders expect Fed to proceed cautiously with rate cuts in 2025 By Daksh Grover Jan 2 - Gold prices inched higher on Thursday, continuing its momentum from 2024, while traders sought more clarity on the U.S. Federal Reserve's interest rate trajectory and President-elect Donald Trump's policies.
Spot gold rose 0.39% to $2,634.15 per ounce, as of 0255 GMT.
U.S. gold futures edged up 0.
2% to $2,646.30. Bullion surged over 27% in 2024, its largest annual gain since 2010, driven by Fed's substantial rate cuts and escalating geopolitical tensions.
The dollar index slipped 0.1%, making dollar-priced bullion more affordable for holders of other currencies. "Gold seems to be consolidating in a tight range, which often signals a market that's poised for a breakout.
I suspect that breakout will be to the upside," said Kyle Rodda, financial market analyst at Capital.com. Gold is likely to remain bullish , driven by geopolitical risks and expectations of rising government debt due to a deep fiscal deficit under Trump’s administration, despite potential challenges from slower Fed rate cuts and U.
S. dollar strength, Rodda said. 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 Trump's tariff policies. Meanwhile, traders anticipate the Fed to adopt a slow and cautious approach to further rate cuts in 2025, as inflation continues to exceed its 2% target.
Gold is viewed as a hedge against inflation, particularly in times of geopolitical and economic uncertainty. According to the CME's FedWatch Tool, markets are pricing in just an 11.2% chance of a rate cut in January.
Spot silver rose 1.5% to $29.29 per ounce, palladium added 0.
9% to $912.26, and platinum gained 0.7% to $917.
14 Silver ended 2024 as its best year since 2020, while platinum and palladium declined. This article was generated from an automated news agency feed without modifications to text..
