Gold Prices Steady Amid Year-End Trading

Gold prices were largely unchanged in Asian trade on Friday amid thin year-end trading, although they were set to edge higher this week due to cautious sentiment following the U.S. Federal Reserve’s hawkish stance.

Current Prices
– Spot Gold: $2,633.40 per ounce
– February Gold Futures: $2,649.91 per ounce (down 0.2%) as of 00:20 ET (05:20 GMT).

Trading in gold usually sees thin volumes and subdued prices toward the year-end as many institutional traders and market participants close their books for the holiday season. Additionally, year-end typically sees fewer economic data releases and major policy decisions, which limits significant price volatility.

Despite the recent downward pressure from a strong dollar, the yellow metal is set to edge up 0.3% for the week after losing more than 1% previously. The strong dollar, which touched near a two-year high, continues to impact gold prices negatively, as it makes gold more expensive for buyers using other currencies.

Gold Under Pressure from Strong Dollar

The U.S. Dollar Index was slightly higher in Asian trade on Friday. Gold prices dropped sharply after the Federal Reserve’s policy meeting suggested only two more rate cuts in 2025, deviating from previous expectations of four cuts. Higher interest rates typically make gold less attractive compared to interest-bearing assets like bonds.

Other precious metals remained largely unchanged:
– Platinum Futures: $954.50 an ounce
– Silver Futures: $30.380 an ounce.

Copper Gains on Concentrate Shortage News

On the industrial metals front, copper prices saw a rise following a Reuters report that indicated China’s leading copper smelters have set lower processing charge guidance for Q1 2025 due to a shortage of copper concentrates.
At a meeting in Shanghai, the China Smelters Purchase Team agreed on new rates, setting treatment and refining charges at $25 per metric ton and 2.5 cents per pound, which is down 28.6% from Q4 guidance.

Despite this news, the red metal was unable to fully capitalize due to the effect of the strong dollar.
– Benchmark Copper Futures rose 0.5% to $9,008.50 a ton
– February Copper Futures edged down 0.1% to $4.1360 a pound.