World gold price close to 2,600 USD

Precious metals turned down in the first session of the week, at one point down to $2,608 an ounce, due to pressure from the strong dollar.

At the end of the trading session on December 23, the world spot gold price decreased by nearly 10 USD to 2,612 USD per ounce. During the session, the price dropped to 2,608 USD at one point.

The market fell amid low trading volumes ahead of the holiday season. Prices were also pressured by a strong dollar and rising US government bond yields as investors await clearer signals from the US Federal Reserve on monetary policy in 2025.

World gold prices turned down in the session of December 23. Chart: Kitco

The Dollar Index, which measures the greenback against a basket of other currencies, rose 0.4%, nearing a two-year high. That made gold less attractive to buyers using other currencies. The yield on the 10-year US Treasury note also rose.

"The market is correcting after the Fed's policy meeting last week. Investors are starting to bet on a slowdown in monetary easing next year. The Fed may stop cutting interest rates from January, or even March," said Peter Grant, deputy director of Zaner Metals.

Last week, the Fed announced a 25 basis point (0.25%) interest rate cut, but also signaled it wants to slow the rate cuts next year. The announcement sent gold prices to a one-month low last week.

Gold has risen 27% since the start of the year and has been hitting new highs. The precious metal has had its best year since 2010, thanks largely to central bank buying, geopolitical tensions and a wave of interest rate cuts from major countries.

"The big factor coming up is Donald Trump's presidency and the first executive orders he may announce. This will cause volatility in the market and benefit gold," said Michael Langford, investment director at Scorpion Minerals.

President-elect Donald Trump will be inaugurated on January 20. Gold is often seen as a safe haven in times of economic and political turmoil.