Investing.com-- Gold prices rose Tuesday, helped by a recent drop in the dollar as well as ongoing uncertainty around economic growth.
At 09:45 ET (14:45 GMT), spot gold rose 1% to $2,661.69 an ounce, while gold futures expiring in February rose 1% to $2,675.31 an ounce.
Bullion prices were nursing losses through December, amid some profit-taking, and as investors positioned for a slower pace of interest rate cuts by the Federal Reserve in 2025.
Strength in the dollar was a major weight on gold, as the greenback surged to over two-year highs. But the dollar has since fallen from these peaks, offering support for the yellow metal Tuesday.
Trump denies plans to impose less strict tariffs
Trump on Monday denied a Washington Post report that his administration will only target critical imports with trade tariffs. The President-elect has vowed to impose steep import tariffs to further the U.S.’ trade dominance, especially over China.
Still, the report and Trump’s comments spurred increased uncertainty over just what Trump’s policies will entail for global trade. The dollar slid to a one-week low after the report.
Moderate gains in 2025 likely - RBC
Gold is also likely to see moderate gains in 2025 thanks to ongoing uncertainty around economic growth and inflation risks supporting demand from central banks and investors, according to analysts at RBC Capital Markets.
Prices jumped by around 27% in 2024, a return which the RBC analysts led by Josh Wolfson noted surpassed broader equities and commodities. Average prices for the metal gained 23% annually to $2,390 per troy ounce, representing the ninth yearly increase.
The analysts forecast that gold would register a "positive" annual performance in 2025 as investors' appetites remain whetted by "economic uncertainty (global growth, inflation risks, Fed outlook), geopolitical tensions (deglobalization, conflict, trade protectionism), and persistently high global sovereign debt."
"Additionally, we note that concerns over higher yields are largely predicated upon a narrative of increasing inflation risks, including risks of US trade protectionism, immigration policy changes, and ongoing high budget deficits, all of which stand to benefit gold."
Gold prices are estimated to rise to an average of $2,823 per ounce annually and $2,873 per ounce in 2026, and then retreat from that level over the following two years, the RBC predictions showed.
Other precious metals were mixed on Tuesday. Platinum futures rose 3.4% to $975.10 an ounce, while silver futures gained 1.2% to $30.962 an ounce.
Copper steadies with more China cues in focus
Among industrial metals, copper prices steadied after regaining some ground this week on the prospect of more economic stimulus in top importer China.
Benchmark copper futures on the London Metal Exchange rose 0.3% to $9,026.50 a ton, while March copper futures gained 0.9% to $4.1973 a pound.
The red metal rose on Monday as investors bet that worsening economic conditions and pressure from US trade headwinds will push Beijing into doling out more elaborate stimulus measures to support growth.
Consumer price index inflation data due later this week is set to offer more cues on the country.
Outside China, copper took mixed signals from middling purchasing managers index data from the US and euro zone, which showed business activity remained subdued in December.
(Ambar Warrick contributed to this article.)