Gold rises, driven by US easing and central bank demand

Gold rose above $2,630 per ounce on Thursday, continuing its upward momentum after a 27% surge in 2024, its best performance since 2010.

Gold rises, driven by US easing and central bank demand

Monetary easing, persistent geopolitical tensions, and record central bank gold purchases have driven the rally. Investors are now looking for new factors that could influence the Federal Reserve's monetary policy this year, especially after Chairman Jerome Powell expressed caution about further rate cuts due to renewed inflation concerns. This hawkish stance could diminish the appeal of non-yielding gold.

Gold Supported by central bank demand and economic recovery

Meanwhile, traders consider challenges under the incoming Trump administration and China’s economic recovery efforts. A recent World Gold Council survey suggests that central banks will likely increase gold purchases next year, potentially boosting demand for the metal.