Gold ticks up on safe-haven demand, eyes on Fed and Trump policy

Gold prices edged higher on Friday, building on a 1% gain from the previous session, boosted by safe-haven demand, while focus on the Fed’s rate outlook and U.S. President-elect Trump’s proposed trade tariffs.

FUNDAMENTALS

* Spot gold rose 0.1% to $2,660.25 per ounce, as of 0018 GMT, hovering around over two-week low hit on Thursday. Bullion was up about 1.5% for the week so far.

* U.S. gold futures rose 0.2% to $2,673.90.

* Bullion emerged as one of the top-performing assets in 2024, surging more than 27% in its largest annual gain since 2010. * On the geopolitical level, Israeli airstrikes killed at least 68 Palestinians in Gaza, including the Hamas-controlled police chief, his deputy, and nine displaced people, Gaza authorities said.
* Additionally, Russia launched a drone strike on the Ukrainian capital Kyiv early on Wednesday, causing damage in at least two districts
* Gold flourishes in low-interest-rate environments and serves as a hedge against economic and geopolitical uncertainties.
* Data on Thursday confirmed the resilience of the job market, with new unemployment claims in the U.S. falling to an eight-month low last week, indicating minimal layoffs as 2024 came to a close.

* Last month, the U.S. central bank implemented a third consecutive rate cut, but now projects only two cuts in 2025, citing economic and job market resilience.

* Traders expect the Fed to take a measured and cautious approach to rate cuts in 2025, given that inflation remains above the central bank’s 2% target.

* Markets now await next week’s U.S. job openings data, ADP employment report, Fed meeting minutes, and employment report for further direction.

* Spot silver fell 0.1% to $29.54 per ounce, platinum was steady at $923.09, and palladium shed 0.2% to $909.74.

* Both silver and platinum were on track of weekly rises.

DATA/EVENTS (GMT) 0855 Germany Unemployment Chg SA Dec 0855 Germany Unemployment Rate SA Dec 1500 US ISM Manufacturing PMI Dec.