Bullion rose more than 27 in 2024
Gold could register another year of gains in 2025, analyst says
Trump trade policies could stoke inflation

Jan 2 Reuters Gold prices rose on Thursday, buoyed by volatility in equities and fresh positioning while the U.S. Federal Reserve39;s interest rate outlook remained in focus ahead of trade tariffs proposed by Presidentelect Donald Trump.

Spot gold rose 0.7 to 2,641.64 an ounce by 1140 GMT, having gained 0.7 on the last trading day of 2024. U.S. gold futures gained 0.5 to 2,654.30.

In my opinion, political and economic risks, nondollar and yieldsensitive demand from dedollarising central banks and investors seeking a hedge against fiscal instability, as well as sticky inflation, will support another year of gains for gold, said Ole Hansen, head of commodity strategy at Saxo Bank.

In 2024 the Fed39;s rateeasing cycle, robust central bank purchases and mounting geopolitical tensions propelled bullion to multiple record highs and a 27 annual gain, its biggest since 2010.

Over the next month the market will be focusing on new year flows from asset allocators and where they go, as well as Trump and more details about his policies, some of which are likely to end up being goldfriendly, Hansen said, adding that a gold price target of 3,000 an ounce looks likely.

Trump will be sworn in as president of the United States on Jan. 20. His proposed tariffs and protectionist trade policies are expected to be inflationary and could…