PRECIOUS-Gold prices dip as markets await fresh catalysts

Updates for market close

By Sherin Elizabeth Varghese

Dec 30 (Reuters) - Gold prices dipped in thin trade on Monday as traders awaited fresh catalysts, including next week's U.S. economic data, which could influence the Federal Reserve's interest rate outlook for 2025, as well as policies from incoming President Donald Trump.

Spot gold XAU= fell 0.6% to $2,604.49 per ounce as of 01:42 p.m. ET (1842 GMT). U.S. gold futures GCcv1 settled 0.5% lower at $2,618.10.

"I think it's just the holiday thin trade. Perhaps some squaring of the books before year-end," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Geopolitical tensions are expected to remain high into next year, with central banks continuing to buy gold, while the U.S. debt situation is likely to worsen and the deficit to grow under the Trump administration, fuelling ongoing safe-haven demand for the metal, Grant said.

Gold has surged nearly 27% this year, reaching a record high of $2,790.15 on Oct. 31, as investors sought the yellow metal amid geopolitical uncertainty and U.S. rate cuts.

Anticipation of major U.S. policy shifts in 2025, including potential tariffs, deregulation and tax changes, has grown as Trump prepares to take office in January.

Earlier this month, Fed Chair Jerome Powell signaled a cautious stance on further rate cuts after delivering a quarter-point reduction, aligning with market expectations.

A slew of U.S. economic data due next week includes job openings figures, the ADP employment report, the Fed's December FOMC minutes, and the U.S. employment report, to gauge the health of the economy.

Bullion is considered a hedge against inflation and turmoil but high rates reduce the appeal of holding the non-yielding asset.

Spot silver XAG= lost 1.3% at $28.98 per ounce and platinum XPT= fell 1.5% to $905.62, having hit a more than three-month low on Friday.

Palladium XPD= was down 1% at $902.16.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Rod Nickel)

((sherinelizabeth.varghese@thomsonreuters.com;))