Gold recorded its highest level in two weeks on Thursday, January 2, 2025, supported by demand for purchasing safe havens and the fall in yields on US Treasury bonds. The focus is on expectations for U.S. interest rates ahead of the upcoming implementation of trade tariffs proposed by President-elect Donald Trump.
In instant trading, gold rose 1.3% to $2,659.73 an ounce on Thursday. Thus recording its highest level since December 18, 2024. US gold futures rose 1.16% to $2,671.20 per ounce.
Yields on 10-year U.S. Treasury notes fell. This reinforces investor interest in buying the yellow metal, which does not generate returns, according to Ronna O’Connell, analyst at Stone.
Low interest rates increase the appeal of gold as a hedge against economic and geopolitical risks. The market is now waiting for a new round of catalysts. And in particular a series of American economic data scheduled for publication next week and which could influence interest rate expectations for 2025.
Gold has recorded several record highs in 2024 and is up 27%, the largest annual rise since 2010. This comes amid interest rate reduction measures taken by the Federal Reserve (the US Central Bank ), massive purchases by Central Banks and an escalation of geopolitical tensions.
-Trump’s new presidential term begins on January 20, 2025. Proposed tariffs and protectionist trade policies are expected to increase inflation rates and could spark trade wars, increasing gold’s appeal as a safe haven.
As for other precious metals, silver in spot trading rose 2.1% to $29.48 an ounce. Palladium rose 1.3% to $922.04 an ounce. Platinum rose 2.1% to $922.85 an ounce.
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