Gold Prices Rise as Investors Await Fed and Trump Policies

Gold prices rose slightly on Monday as investors awaited the U.S. Federal Reserve’s interest rate outlook and President-elect Donald Trump’s potential tariff policies, which could impact the metal’s trajectory in 2025. As of 0318 GMT, spot gold rose 0.2% to $2,626.30 per ounce, while U.S. gold futures increased 0.3% to $2,638.70.

The dollar index remained steady, supporting gold’s stable movement, according to Kelvin Wong, senior market analyst for OANDA in Asia Pacific. “Geopolitical tensions have been a key driver of gold’s uptrend this year and are likely to continue into 2025, particularly with Trump back in office,” Wong stated.

Markets are bracing for major policy shifts, including possible tariffs, deregulation, and tax changes as Trump assumes office in January. Gold has surged over 27% this year, reaching an all-time high of $2,790.15 on October 31, driven by significant Fed rate cuts and rising geopolitical uncertainties.

Gold is viewed as a hedge against both geopolitical instability and inflation. The U.S. central bank has slashed rates by 100 basis points this year but signaled fewer cuts in 2025, which could reduce gold’s appeal as higher rates make non-yielding assets less attractive. Wong noted that trading could remain subdued until the new year, with gold likely to continue moving sideways in the short term.

Meanwhile, spot silver gained 0.1% to $29.40 per ounce, platinum rose 0.2% to $921.45, and palladium increased by 0.1% to $912.84.