Gold prices opened the new year steady near $2,625 per ounce after the precious metal recorded its largest annual gain since 2010, rising by 27% in 2024.

Last year’s surge was driven by the Federal Reserve’s interest rate cuts, sustained demand for safe-haven assets, and increased central bank purchases of gold.

Investors are now focused on the trajectory of U.S. interest rates in 2025, following Federal Reserve Chair Jerome Powell’s cautious comments last month about the pace of further rate cuts amid renewed inflation concerns. Lower interest rates are typically favorable for non-yielding assets like gold.

This week, key economic data such as U.S. jobless claims and manufacturing reports are expected to shed light on the Fed’s monetary easing path.

Spot gold remained unchanged at $2,625.42 per ounce as of 8:11 a.m. in Singapore. The Bloomberg Dollar Index was flat, while silver, palladium, and platinum prices edged higher.