According to FX168 Financial News (Asia-Pacific) on Thursday (December 26), Gold rose amid thin holiday trading volumes, primarily supported by safe-haven demand due to geopolitical tensions. Investors are paying attention to the USA Fed's 2025 interest rate strategy and Donald Trump's tariff policies, which could impact the prospects for Metal.

As of the time of this report, spot Gold has risen by 0.4% to around $2,625. Gold is up 27% this year and is on track for its best performance since 2010, mainly driven by interest rate cuts from the USA Fed and increasing geopolitical uncertainty.

Gold is considered a safe investment choice during periods of geopolitical turmoil and performs well in a low-interest-rate environment.

As the end of the year approaches, trading volumes may decrease further. Due to public holidays after Christmas, markets in Australia, New Zealand, Hong Kong, and the Eurozone will be closed on Thursday.

IG market strategist Yeap Jun Rong stated, "The stagnation of the USA dollar and USA Treasury yields today has allowed Gold prices to rebound, making up for the drop after the USA Fed meeting."

Yeap Jun Rong also pointed out that the typical upward trend of Gold in the last week of December is contributing to the current rise in Gold prices.

On the geopolitical front, Hamas and Israel exchanged accusations on Wednesday for failing to reach a ceasefire agreement, with earlier media reports indicating that the differences between Hamas and Israel have narrowed.

Reuters reported that Hamas accused Israel of proposing new conditions related to withdrawal, ceasefire, hostage exchange, and the return of displaced persons, resulting in the postponement of what could have been a reachable agreement. Hamas also stated that it is seriously considering negotiations mediated by Qatar and Egypt and has exhibited flexibility.

Israeli Prime Minister Netanyahu accused Hamas of lying. He stated that Hamas has betrayed the consensus that had been reached and continues to create difficulties in negotiations. He emphasized that Israel will do everything possible to rescue hostages.

Brian Lan, the general manager of GoldSilver Central in Singapore, said: "We are hearing about uncertainties in the Middle East. If the situation escalates, it may bring upward pressure on Gold."

He added: "I don't think Gold will have too much fluctuation; it may remain at current levels by the end of the year."

Traders are awaiting the release of USA unemployment claims data later in the day and are reacting to the significant policy changes that may occur after Trump returns to the White House in January, including tariffs, deregulation, and tax changes.