Gold prices inched higher on Thursday, January 2, 2025, continuing their positive momentum from 2024. The precious metal gained as traders sought clarity on the US Federal Reserve’s interest rate decisions and President-elect Donald Trump’s policies.

As of 0255 GMT, spot gold rose by 0.39% to $2,634.15 per ounce, while US gold futures edged up 0.2% to $2,646.30 per ounce.

In India, 24-carat gold was priced at ₹7,833 per gram, and 22-carat gold was at ₹7,180 per gram.

Gold’s surge in 2024 marked its largest annual gain since 2010, with a remarkable increase of over 27%. This rally was primarily driven by substantial rate cuts from the Federal Reserve and rising geopolitical tensions.

The recent dip in the dollar index by 0.1% also made gold more affordable for international buyers.

Kyle Rodda, a financial market analyst at Capital.com, noted, “Gold seems to be consolidating in a tight range, which often signals a market that’s poised for a breakout. I suspect that breakout will be to the upside.”

This suggests that gold may continue its bullish trend in 2025, supported by ongoing geopolitical risks and the anticipation of rising government debt under Trump’s administration.

Despite challenges like slower rate cuts and a stronger US dollar, Rodda believes gold will remain attractive as a hedge against inflation, especially during uncertain times.

“Geopolitical risks and inflationary pressures will continue to drive demand for gold,” he said.

Market sentiment is also influenced by the upcoming US economic data, which could provide further insight into the Fed’s rate plans for 2025.

While inflation continues to exceed the Fed’s 2% target, the central bank is expected to adopt a cautious approach towards additional rate cuts in the near future.

Jateen Trivedi, VP Research Analyst at LKP Securities, explained, “While fewer rate cuts by the Fed have exerted some downward pressure on gold, the uncertainty surrounding global trade, especially with Trump’s policies, is expected to strengthen gold prices on dips.”

Trivedi sees immediate support for gold at ₹76,400 per 10 grams on MCX, with resistance at ₹77,250 per 10 grams.

Rahul Kalantri, VP of Commodities at Mehta Equities, highlighted that the gold market received additional support from weak manufacturing data from China.

The China General Manufacturing PMI for December 2024 fell to 50.5, below market expectations, which further added to gold’s appeal.

Kalantri expects gold to maintain positive momentum in today’s session, with support at $2,615–$2,600 per ounce and resistance at $2,647–$2,662 per ounce.

In India, gold has support at ₹76,680–₹76,520 per 10 grams, and resistance at ₹77,050–Rs 77,210 per 10 grams.

–With agencies inputs