Gold climbs to two-week high on safe-haven demand

Gold hit a two-week high on Thursday, fueled by safe-haven buying and a dip in U.S. Treasury yields, while the market took out positions ahead of the Federal Reserve’s rate outlook and President-elect Donald Trump’s looming trade tariffs.

Spot gold rose 1% to $2,649.73 an ounce by 9:47 a.m. ET (1446 GMT), hitting its highest since Dec.18. U.S. gold futures gained 0.8% to $2,663.20.

A line chart titled “Spot gold price in USD per oz” that tracks the metric over time.
The benchmark U.S. 10-year bond yield slipped, making non-yielding bullion more attractive for investors.

“I can’t see anything market-moving in the news, but geopolitical forces (international tensions as well as financial uncertainties, not less ahead of the inauguration of President-elect Trump) are supportive,” said StoneX analyst Rhona O’Connell.

Bullion thrives in low-interest-rate environments and acts as a hedge against economic and geopolitical risks.

Russia launched a drone strike on Kyiv early Wednesday, causing damage in at least two districts, while the Israeli military struck a suburb of Gaza City.

Traders await next week’s U.S. job openings data, the ADP employment report, the Fed’s December FOMC meeting minutes, and the U.S. employment report to gauge the interest rate outlook for 2025.

In 2024, rate cuts, central bank buying, and geopolitical tensions drove gold to record highs with a an over 27% annual gain, its best since 2010.

پاکستان اور دنیا بھر سے آڈیو خبریں – ARY Podcast

“Corrections or consolidations in the early part of the year could set the stage for a renewed rally,” Fawad Razaqzada, market analyst at Forex.com. said, adding that a gold price target of $3,000 an ounce was feasible.

“The unwinding of the ‘Trump trade’ – a phenomenon characterised by a strong U.S. dollar and robust equity markets – could weaken the dollar and bolster gold prices.”

Trump’s upcoming inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected to be inflationary, potentially sparking trade wars.

Among other metals, spot silver rose 2.1% to $29.48 an ounce, palladium gained 1.3% to $922.04 and platinum climbed 2.1% at $922.85.