Gold stabilizes, on track for biggest annual gain in 3 years

Gold prices kept flat today, Dec. 29, but they are heading for their biggest annual gain in three years, driven by forecasts that the Federal Reserve would cut the interest rates in 2024. In addition, demand for safe havens increased on the geopolitical tensions in Ukraine and the Middle East.

Gold futures for February delivery held unsteady at $2,083 per ounce at 10:16 am Makkah time, gaining 14% year-to-date (YTD).

Spot prices increased 0.39% to $2,073, and silver futures for March delivery also rose 0.87% to $24.16.

Platinum spot prices stabilized at $1,007.

The main driver for gold prices next year would be the timing and depth of Fed interest rate cuts, Reuters reported, citing Ilya Spivak, head of global macro at Tastylive.