Gold and oil prices rose during trading – today, Monday – at a time when traders are anticipating economic data from the United States next week and looking for indicators about the potential impact of the return of President-elect Donald Trump to the White House.
gold
Yellow metal prices fell amid weak trading today, at a time when traders are awaiting economic data from the United States next week and looking for indicators about the potential impact of the return of the president-elect on the directions of the Federal Reserve (the US Central Bank) in 2025.
Gold in spot transactions fell 0.22% to $2,614.32 per ounce, and US gold futures contracts fell 0.25% to $2,625.20.
After this quiet week, traders are scheduled to focus next week on US new jobs data, an employment report and the minutes of the December Federal Open Market Committee meeting, all of which can provide insights into the strength of the world’s largest economy.
Gold rose by more than 27% this year, reaching its highest level ever at $2,790.15 on October 31, and the rise was driven by the US Central Bank’s monetary policy easing cycle and escalating global tensions.
Markets are now bracing for major policy shifts including potential tariffs, deregulation and tax changes in 2025, with Trump returning to the White House in January.
Gold is usually seen as a hedging tool in times of economic and geopolitical turmoil, but rising interest rates reduce the appeal of the non-yielding metal.
As for other precious metals, silver rose in spot transactions by 0.2% to $29.43 per ounce, platinum rose 0.33% to $922.45, and palladium increased 0.38% to $915.25.
Oil
Oil prices fell today amid weak trading before the end of the year, at a time when traders are awaiting more economic data from China and the United States later this week to assess growth in the world’s largest oil consumers.
Brent crude futures fell 17 cents to $74 per barrel in the latest trading, and the most traded March contract recorded $73.73 per barrel, down 6 cents.
US West Texas Intermediate crude fell 27 cents to $70.33 a barrel.
Both crude oil rose 1.4% last week, supported by a larger-than-expected decline in US crude inventories the week ending December 20, with an increase in refinery consumption and an increase in demand for fuel during the holiday season.
Oil prices also received support from optimism about economic growth in China next year, which may raise demand from the largest crude oil importing country.
Reuters reported last week that, with the aim of giving impetus to growth, the Chinese authorities agreed to issue special treasury bonds with a record value of 3 trillion yuan ($411 billion) in 2025.
Ryan Fitzmaurice, chief commodities expert at Marex, said: “Global oil consumption reached its highest level ever in 2024, although China’s performance was below expectations, and oil stocks are heading into next year at relatively low levels.”
“Chinese economic data is expected to improve in the future as the latest stimulus measures take hold in 2025. Also, lower prices in the United States and elsewhere should support oil consumption,” he added.
Investors are awaiting China’s factory purchasing managers’ index data, scheduled to be released tomorrow, and the US Institute for Supply Management’s December survey, scheduled to be released on Friday.
In Europe, hopes of reaching a new agreement to transport Russian gas through Ukraine are fading after Russian President Vladimir Putin said Thursday that there is no time left this year to sign a new agreement.
Analysts said that the cessation of Russian gas – which reaches Europe via pipelines – would push it to import more liquefied natural gas.
