Gold Price Faces Slight Dip Today but on Track for a 26% Annual Gain

Forex - Gold prices are on track for their best annual performance in over a decade. This morning, the price of gold per ounce showed a slight decline, yet it has risen more than 26% since the beginning of the year.

Having peaked at $2,790.04 during the year, the price of gold is currently at $2,605.44, down 0.1% from yesterday. Over the last month, gold has decreased by 1.9%, but it has risen 26.28% compared to the start of the year.

KCM Trade's chief market analyst, Tim Waterer, stated, "Gold had a fantastic year in 2024, and much of this rise was based on the expectation of a shift to a lower interest rate environment."

The market is now anticipating a series of U.S. economic data to be released next week, which could impact the 2025 interest rate outlook, in addition to a new set of catalysts including elected President Donald Trump's tariff policies. Waterer indicated that "the U.S. interest rate outlook will continue to be the primary driver of gold prices. Trump's trade policies will play a key role in shaping the inflationary landscape, the Fed's interest rate trajectory, and thus the price of gold."

Gold bullion is viewed as a hedge against inflation and turmoil, but high rates diminish the allure of this non-yielding asset. Kyle Rodda, a financial market analyst at Capital.com, remarked, "As we approach 2025, I believe the trend is upward and that the fundamentals are constructive for gold, which suggests it should test record levels again."

Spot silver is steady at $28.98 per ounce, while palladium has increased by 0.5% to $908.25. Platinum remains flat at $900.71. Silver is on track for its best year since 2020, with an annual increase of 21.35%, while platinum and palladium are preparing for annual losses. Platinum prices are down 8.35% compared to last year, and palladium prices are down 18.2%.