Gold hovers near two-week low as investors book profits

Gold hovered near a two-week low on Tuesday (Dec 30) that it touched in the previous session, as year-end profit-taking caused all precious metals to stage a broad pullback from record highs hit earlier.

Spot gold was up 0.4 per cent at US$4,347.67 per ounce, as at 9.45 am, after hitting a record high of US$4,549.71 on Friday. It fell to its lowest since Dec 17 on Monday, also its sharpest daily loss since Oct 21.

US gold futures for February delivery were up 0.5 per cent at US$4,363.20/oz.

The US dollar held near a one-week high against rivals on Monday, making greenback-priced bullion more expensive for other currency holders.

Bullion has staged a stellar rally in 2025, climbing 66 per cent so far.

Interest rate cuts and bets of further easing by the US Federal Reserve, geopolitical conflicts, robust demand from central banks, and rising holdings in exchange-traded funds have fuelled gold’s rally this year.

Fed funds futures traders are pricing in between two and three 25 basis point cuts next year, with the first cut seen as having roughly 50/50 odds for March.

Non-yielding assets tend to do well in a low-interest-rate environment.

Spot silver was up 1.6 per cent at US$73.43 per ounce, after hitting an all-time high of US$83.62 in the previous session. Silver registered its biggest daily loss since August 11, 2020, on Monday.

SEE ALSO

Silver has gained 154 per cent year-to-date, far outpacing gold, and breaking through the US$80 mark, propelled by its designation as a critical US minerals list, supply constraints, and low inventories amid rising industrial and investment demand.

Spot platinum rose 0.1 per cent to US$2,110.60 per ounce, a one-week low, after rising to an all-time high of US$2,478.50 on Monday, even as it witnessed its sharpest daily drop ever by the session’s close, while palladium fell 0.7 per cent to US$2,605.78 per ounce, a more than two-week low. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.