The precious metal recovered on Tuesday (December 30) after a sharp fall in the previous session, as markets refocused on geopolitical and economic risks, reviving gold's rally to close out its best year since 1979.
Spot gold prices rose 0.8% to $4,365.86 an ounce at 9:56 a.m. ET (1456 GMT). On Monday, gold posted its biggest daily percentage drop since October 21 as profit-taking pushed it down from Friday's record high of $4,549.71.
U.S. gold futures rose 0.8% to $4,380.10. "We saw some pretty extreme volatility yesterday where we saw strong action in Asian trading to the upside and then some pretty substantial profit-taking, but things have stabilized somewhat today, and trading remains generally favorable," said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold, seen as a safe-haven asset, has surged 66% by 2025—its sharpest rise since 1979—fueled by a perfect combination of easing interest rates, geopolitical flashpoints, strong central bank buying, and an influx of funds into bullion-backed ETFs.
All eyes are now on the US Federal Reserve and the release of the minutes of its December meeting on Tuesday afternoon. Traders are expecting two more rate cuts next year, a scenario that could sustain positive momentum for non-yielding gold.
"Markets remain skeptical of the Russia-Ukraine peace deal, and broader geopolitical risk measures remain elevated," supporting prices, Grant added.
Russia has accused Ukraine of attempting to attack President Vladimir Putin's residence and vowed retaliation, undermining prospects for a peace deal. Ukraine says the claims are baseless.
Silver rose 4.6% to $75,523 an ounce. Silver prices hit an all-time high of $83.62 on Monday before posting their biggest daily drop since August 2020, with analysts at Societe Generale also pointing to the CME group's move to raise initial margin requirements for silver futures contracts on Friday.
Silver has surged 161% this year, driven by its inclusion on the U.S. list of essential minerals, supply deficits, and growing industrial and investor interest.
Platinum rose 4.5% to $2,203.07 an ounce. It also touched a record high on Monday, at $2,478.50, before posting its biggest one-day drop in history. Palladium rose 2% to $1,648.75, after dropping about 16% on Monday. (alg)
Source: Reuters.com
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