Gold prices surged on Thursday, with spot gold rising 0.9% to $2,635.29 per ounce, buoyed by safe-haven demand amid light post-Christmas trading. U.S. gold futures closed 0.7% higher at $2,653.90. The rally reflects growing concerns over geopolitical tensions and uncertainty about the U.S. economy under the incoming Trump administration.
“Gold’s gains are partly driven by Russia’s recent attacks on Ukraine’s energy infrastructure,” said Daniel Pavilonis, senior market strategist at RJO Futures. The escalation followed President Joe Biden’s condemnation of Russia’s Christmas Day strikes and his request for the U.S. Defense Department to continue ramping up weapons deliveries to Ukraine.
Gold, traditionally seen as a hedge against geopolitical instability and inflation, has gained 28% this year, reaching an all-time high of $2,790.15 on October 31. Analysts project further increases, with Pavilonis predicting prices could break $3,000 in 2025 as inflationary pressures persist and central banks continue gold purchases.
The Federal Reserve’s recent easing measures, coupled with anticipated inflation under Trump’s policies, including tariffs and deregulation, add to the uncertainty. “The first half of next year may see further gains due to geopolitical tensions, with some profit-taking likely in the second half,” noted Ajay Kedia, director at Kedia Commodities in Mumbai.
Other precious metals saw mixed results. Spot silver rose 0.4% to $29.72 per ounce, while platinum fell 0.9% to $935.25, and palladium dropped 3% to $925.08.
As markets brace for a volatile 2025, gold’s role as a safe haven remains central amid ongoing global and economic challenges.
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