Gold edges higher in holiday trade; eyes on Fed's 2025 plan

Gold inched higher on Thursday in holiday-thinned trade, as investors focused on the U.S. Federal Reserve's interest rate strategy and anticipated tariff policies under President-elect Donald Trump, both of which could influence the metal's direction in the coming year.

FUNDAMENTALS

* Spot gold rose 0.2% to $2,619.59 per ounce, as of 0023 GMT.


* Bullion has surged approximately 27% so far this year, scaling multiple record highs, fueled by significant Fed rate cuts, including a jumbo reduction in September, and heightened geopolitical uncertainties.

* U.S. gold futures steadied at $2,637.10.

* In a holiday-curtailed week, trading volumes will likely thin out as the year-end approaches.

* Markets are eyeing jobless claims data due later in the day, while preparing for major policy shifts, including tariffs, deregulation and tax changes, in 2025 as Trump returns to the White House in January.

* On the geopolitical level, the Palestinian militant group Hamas and Israel traded blame on Wednesday over their failure to conclude a ceasefire agreement despite progress reported by both sides in past days.

* Gold is considered a safe investment option during economic and geopolitical turmoil and tends to thrive in a low interest rate environment.

* Elsewhere, South Korea's central bank on Wednesday said it intends to lower the benchmark interest rate further in 2025, citing rising political uncertainties and other economic challenges.

* While a benign U.S. inflation reading on Friday eased some concerns about the pace of cuts next year, markets are pricing in just about 35 basis points worth of easing for 2025.

* Markets in Australia, New Zealand, Hong Kong and Euro Zone are closed on Thursday for the Boxing Day public holiday.

* Spot silver added 0.2% to $29.67 per ounce, while platinum fell 0.7% to $938.25 and palladium shed 0.7% to $946.50.

DATA/EVENTS (GMT) 1100 France Unemp Class-A SA Nov 1330 US Initial Jobless Clm 21 Dec.