Gold set for its best year in three
Silver eyes small yearly decline, platinum down more than 6
Palladium down 38 so far this year biggest drop since 2008

Dec 29 Reuters Gold edged up on Friday as it looked set to mark its best year in three, supported by expectations that the U.S. Federal Reserve could begin easing its monetary policy as early as March next year.

Spot gold was steady at 2,064.75 per ounce as of 1248 GMT. U.S. gold futures , however, fell 0.4 to 2,074.50 per ounce.

Bullion has so far risen nearly 14 in a volatile year that saw prices swinging between lows near 1,800 earlier this year and in October to a record high of 2,135.40 on Dec. 4.

Gold benefited from lower U.S. interest rates in recent weeks and ongoing solid demand from central banks. We expect this trend to continue in 2024, UBS analyst Giovanni Staunovo said.

Analysts expect that gold39;s recent rally could carry over to 2024 on the back of a softer U.S. dollar and Treasury yields as traders wager a pivot to interestrate cuts early next year.

To see higher levels, we need to see stronger demand from investors, such as a pickup in ETF inflows. For that, weaker U.S. economic data and lower inflation is needed, so that the Fed sounds more dovish, Staunovo said.

Lower interest rates decrease the opportunity cost of holding nonyielding bullion and weigh on the dollar.

In case of bullish expectations about the Fed39;s monetary easing and unexpected escalation in geopolitical risks,…