By Daksh Grover and Sherin Elizabeth Varghese
(Reuters) – Gold prices were set to end a record year on a positive note on Tuesday as robust central bank buying, geopolitical uncertainties and monetary policy easing fueled the safe-haven metal’s strongest annual performance since 2010.
rose 0.4% to $2,615.00 an ounce as of 0927 GMT, while the US rose 0.4% to $2,627.30.
One of the best-performing assets of 2024, bullion is up more than 26% this year, its biggest annual jump since 2010. It last hit an all-time high of $2,790.15 on October 31 after a string of record-breaking activity. rallies all year round.
“Rising geopolitical risks, central bank demand, monetary policy easing by global central banks and the resumption of inflows into gold-linked Exchange Traded Commodities (ETC) were the key drivers of gold’s 2024 rally,” says Aneeka Gupta, director of macroeconomic research at WisdomTree.
The metal is likely to remain supported in 2025 despite some headwinds from a stronger US dollar and a slower pace of easing by the Federal Reserve, Gupta added.
The US Fed cut interest rates for the third time in a row this month, but fewer interest rate cuts have been made before 2025.
Donald Trump’s new administration was also poised to have a significant impact on global economic policy, including tariffs, deregulation and tax changes.
“Bullion bulls could be in for another banner year as global geopolitical tensions rise under Trump 2.0, potentially pushing investors to this proven safe haven,” said Han Tan, chief market analyst at Exinity Group.
Bullion is often seen as a hedge against geopolitical and economic risks and tends to perform well in low interest rate environments.
“We expect gold to rise to $3,000/ton on structurally higher demand from central banks and a cyclical and gradual boost to ETF investing due to Fed rate cuts,” said Daan Struyven, commodities strategist at Goldman Sachs.
Spot silver was steady at $28.96 an ounce, palladium rose 0.8% to $910.70 and platinum rose 0.4% to $904.56.
Silver is off to have its best year since 2020, up almost 22% year to date. Platinum and palladium will suffer annual losses and are down more than 7% and 17% respectively.
