Ammon News - Gold gained on Thursday in light holiday trading, boosted by slight weakness in the U.S. dollar and geopolitical tensions, as investors eyed Federal Reserve's 2025 rate strategy and Donald Trump's tariff policies, which could shape the metal's trajectory next year.

Spot gold rose 0.5% to $2,627.16 per ounce, as of 0501 GMT.

Bullion has risen 27% this year and is set for its best performance since 2010, driven by major Fed cuts and heightened geopolitical uncertainties.

Gold is considered a safe investment option during geopolitical turmoil and thrives in low interest rate environment.

U.S. gold futures added 0.3% to $2,643.40.

In a holiday-curtailed week, trading volumes will likely thin out as the year-end approaches.

The dollar index (.DXY), opens new tab ticked lower, making greenback-priced bullion more affordable for holders of other currencies.

"Some inaction on the U.S. dollar and U.S. Treasury yield in today's session allows gold prices to resume its recovery following its post-Fed dip," said IG market strategist Yeap Jun Rong.

The usual positive trends in gold during the last week of December is contributing to the current rise in gold prices, Yeap Jun Rong added.

Markets in Australia, New Zealand, Hong Kong and Euro Zone are closed on Thursday for the Boxing Day public holiday.

Spot silver was steady at $29.64 per ounce, platinum fell 0.5% to $939.39 and palladium shed 1.5% to $939.33.

Reuters