Gold prices slipped in thin trade on Monday, as markets awaited next week's US economic data and the potential impact of President-elect Donald Trump's return to office on the Federal Reserve's 2025 outlook.
Spot gold was down 0.1% to $2,618.99 per ounce as of 1315 GMT. US gold futures were steady at $2,632.30.
"Quiet day with lower liquidity across all asset classes likely due to the holiday season," UBS analyst Giovanni Staunovo said, adding that market participants will track upcoming US economic data to see if the economy is slowing, which would allow the Fed to keep cutting interest rates.
Fed Chair Jerome Powell said earlier this month that US central bank officials "are going to be cautious about further cuts" after a quarter-point rate reduction in December, in line with expectations, Reuters reported.
For insights into the health of the world's economy, traders await next week's US job openings data, the ADP employment report, the Fed's December FOMC meeting minutes, and the US employment report.
"We still see the same factors in place which supported gold in 2024 - ongoing central bank purchases with a desire to diversify their reserves and ongoing US rate cuts supporting investment demand," Staunovo said.
Gold has gained around 27% so far this year. It hit an all-time high of $2,790.15 on Oct. 31.
Markets expect significant US policy shifts in 2025, including potential tariffs, deregulation, and tax changes, after Trump returns to the White House in January.
Gold is considered a hedge against economic and geopolitical turmoil.
Spot silver was steady at $29.37 per ounce, platinum edged lower by 0.5% to $915.07, having hit an over three-month low on Friday.
Palladium fell 0.1% to $911.10.
