Gold prices surged after notching the largest annual gain since 2010, driven by a risk-off mood sweeping through broader markets. The metal rose 1.3%, advancing alongside other precious metals.
Last year’s rally was fueled by the Federal Reserve’s rate-cutting cycle, sustained demand for safe-haven assets, and purchases by central banks. Analysts expect further gains this year as geopolitical uncertainties remain.
The Fed’s cautious tone on interest rates has investors focused on the rate path in the US, particularly after Chair Jerome Powell signaled greater caution on reducing borrowing costs amid inflation concerns.
Key economic data due Friday will provide clues on the Fed’s easing trajectory. As of 11:46 a.m., spot gold rose to $2,658.26 an ounce, with silver, palladium, and platinum also rising.
Source: https://finance.yahoo.com/news/gold-holds-27-annual-gain-002003965.html