Dec 26, 2024 (MENAFN via COMTEX) --
(MENAFN) Gold prices edged higher on Thursday amid thin trading due to the Christmas holiday, supported by a slight weakening of the dollar and ongoing geopolitical tensions. Spot gold rose 0.5 percent to USD2,626.10 per ounce by 0246 GMT, continuing its upward trajectory as the year draws to a close. The rise in gold comes as investors seek safe-haven assets, a common trend during times of geopolitical uncertainty and fluctuating currency values.
Year-to-date, gold prices have surged 27 percent, setting the stage for their strongest annual performance since 2010. This remarkable increase has been fueled by aggressive interest rate cuts implemented by the Federal Reserve, along with heightened global geopolitical tensions. Gold often gains appeal as a stable investment option during periods of geopolitical strife and thrives in a low-interest-rate environment, which reduces the opportunity cost of holding the non-yielding metal.
U.S. gold futures also saw a rise, gaining 0.3 percent to settle at USD2,643.70. However, trading volumes remained thin due to the shortened holiday week and the general slowdown in activity as the year winds down. The slight decline in the dollar index, which fell 0.1 percent, also played a role in gold's rise, making the precious metal more affordable for investors holding other currencies.
On the geopolitical front, tensions remained high as the Palestinian Islamic Resistance Movement (Hamas) and Israel traded blame on Wednesday over the failure to finalize a ceasefire agreement, despite earlier reports suggesting progress. Meanwhile, market participants are awaiting U.S. jobless claims data expected later in the day, while keeping an eye on potential policy changes, including tariffs, deregulation, and tax reforms, as Donald Trump prepares to return to the White House in January.
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COMTEX_461241788/2604/2024-12-26T05:29:44
