Gold hits best yearly gain since 2010; focus on U.S. jobs data.Gold hits best yearly gain since 2010

During the New Year holiday, trading of precious metals, US crude oil, foreign exchange, and stock index futures contracts under CME was suspended for the whole day, while oil trading ended early, and the New York Stock Exchange was closed for one day.

On Tuesday (December 31, 2024), as the Federal Reserve maintained interest rates at a higher level than other central banks, the US dollar index hit a two-year high, reaching as high as 108.59, and ultimately closed up 0.37% at 108.48. The benchmark 10-year US Treasury yield closed at 4.5760%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.2520%.

On Tuesday, the gold price closed up 0.72% at $2624.28 per ounce, helping the gold price rise by 27% in 2024, setting a record for the largest annual increase since 2010, driven by safe haven demand and interest rate cuts by central banks around the world; However, market sentiment may become more cautious, depending on policy changes during Trump's second term as president. In addition, the US dollar index hit a two-year high on Tuesday, and the 10-year US yield saw its best annual increase in two years, raising concerns about gold being blocked.

Due to the expansion of manufacturing activity in China in December, WTI crude oil closed up 1.02% on Tuesday at $71.81 per barrel; Brent crude oil closed up 0.99% at $74.80 per barrel. Oil prices will drop by about 3% in 2024, marking the second consecutive year of decline.