As traders awaited new catalysts, such as next week’s U.S. economic data that could impact the Federal Reserve’s 2025 interest-rate projection and policies from incoming President Donald Trump, gold prices fell in weak trade on Monday.
The price of spot gold dropped 0.6% to $2,603.89 an ounce at 10:19 a.m. ET (1518 GMT). At $2,615.70, U.S. gold futures were down 0.6%.
“I think it’s just the holiday thin trade. Perhaps some squaring of the books before year-end,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
According to Grant, geopolitical tensions are predicted to be high into the upcoming year, and central banks will likely keep purchasing gold as the U.S. debt situation deteriorates and the deficit increases under the Trump administration. This will continue to feed demand for the metal as a safe haven.
Gold has risen by about 27% this year, hitting a record high of $2,790.15 on October 31 as investors chased the yellow metal in the face of U.S. rate reduction and geopolitical risk.
