- Gold has gained over 26% so far this year
- Geopolitical tensions to remain key driver in 2025 - analyst
- Platinum edges up from over three-month low on Friday
Dec 30 (Reuters) - Gold prices were little changed on Monday, while investors waited for more clues on the U.S. Federal Reserve's interest rate outlook and President-elect Donald Trump's tariff policies, which could shape the metal's 2025 trajectory.
Spot gold inched down 0.1% to $2,617.52 per ounce as of 0751 GMT. U.S. gold futures dropped 0.1% to $2,629.20.
The dollar index has been rather flat, helping gold maintain its sideways movement, said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
"Geopolitical tensions have been a major factor in gold's uptrend this year and are still likely to be a part of the narrative in 2025, especially with Trump entering the picture," he said.
"From a very short-term perspective, until the start of the new year, we are very likely to see this kind of lethargic sideways price movement," Wong said.
Markets are now preparing for major U.S. policy shifts, including potential tariffs, deregulation and tax changes, in 2025 once Trump returns to the White House in January.
Bullion prices have gained more than 26% so far this year and scaled an all-time peak of $2,790.15 on Oct. 31, fuelled by significant Fed rate easing, including a jumbo cut in September, along with heightened geopolitical uncertainties.
Gold is considered a hedge against geopolitical turmoil and inflation.
The U.S. central bank has reduced rates by 100 basis points this year but has hinted at fewer cuts in 2025. Higher rates reduce the non-yielding asset's appeal.
Spot silver added 0.4% to $29.48 per ounce, platinum edged higher by 0.6% to $925.07, having hit an over three-month low on Friday.
Palladium climbed 0.6% to $917.18.
Reporting by Rahul Paswan in Bengaluru; Editing by Sumana Nandy, Varun H K, Savio D'Souza and Sharon Singleton
Source: Reuters