Gold Prices Steady in Thin Year-End Trading, Set for Weekly Gain

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Key Highlights

1. Gold Prices Hold Steady:
   • Spot Gold: Unchanged at $2,633.40 per ounce.
   • Gold Futures (Feb): Slight dip of 0.2% to $2,649.91 per ounce by 05:20 GMT.
   • Weekly Performance: Set to gain 0.3%, recovering from a 1% decline last week.
2. Muted Trading Activity:
   • Year-end holidays reduced trading volumes as institutional traders closed their books.
   • Fewer economic data releases and policy decisions resulted in limited price volatility.
3. Impact of a Strong Dollar:
   • The U.S. Dollar Index remains near a two-year high, pressuring gold prices by making it more expensive for non-dollar buyers.
   • Hawkish signals from the Federal Reserve, indicating only two rate cuts in 2025 compared to prior expectations of four, have further weighed on gold.

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Other Precious Metals

• Platinum Futures: Unchanged at $954.50 per ounce.
• Silver Futures: Stable at $30.38 per ounce.

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Industrial Metals Update

1. Copper Prices Rise Slightly:
   • Benchmark Copper Futures (LME): Up 0.5% to $9,008.50 per ton.
   • February Copper Futures: Edged down 0.1% to $4.1360 per pound.
2. China Smelter Charges Reflect Shortage:
   • China’s smelters reduced copper concentrate treatment and refining charges for Q1 2025 by 28.6%, signaling a shortage.
   • New rates: $25 per metric ton and 2.5 cents per pound, down from Q4’s $35 and 3.5 cents.
3. Strong Dollar Limits Copper Gains:
   • While the concentrate shortage supported copper prices, the robust dollar capped significant upside.

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Conclusion

Gold prices are steady in thin year-end trading, with modest weekly gains despite a strong dollar weighing on momentum. Industrial metals like copper reflect a nuanced trend, with supply-side constraints offering support, though broader dollar strength remains a headwind. Market focus now shifts to early 2025 for potential catalysts in both precious and industrial metals.