Gold prices ticked higher during Asian trade on Thursday, buoyed by geopolitical risks, central bank purchases, and safe-haven demand.
By 3:30 pm AEDT (4:30 am GMT) spot gold prices were up by $8.52 or 0.3% to US$2,632.77 per ounce.
Traders are closely watching developments in the U.S., where President-elect Donald Trump's proposed tariff policies are adding uncertainty to the global economic outlook.
Additionally, ongoing geopolitical tensions, including instability in the Middle East and the Russia-Ukraine conflict, continue to drive safe-haven flows into gold.
Market participants are also focused on signals from the Federal Reserve regarding its monetary policy path in 2025.
In December, Fed Chair Jerome Powell adopted a cautious tone, suggesting a more measured approach to further interest rate cuts after a 25-basis-point reduction. This could lend support to the U.S. dollar, potentially limiting upward momentum for gold.
Upcoming economic data, including the release of U.S. weekly initial jobless claims and the S&P global manufacturing PMI for December may offer further insight into the health of the U.S. economy and labour market, influencing gold prices.