At the beginning of the Asian market session, spot gold fluctuated narrowly and is currently trading around $2606.57 per ounce. Gold prices fell 0.6% in quiet trading on Monday, briefly falling below the 2600 level to $2595.98 per ounce during trading and closing at $2605.62 per ounce, below the key position near the 100 day moving average of $2619. The US dollar index hit a new high for the week, putting pressure on gold prices.

However, most traders are waiting for new catalysts, including next week's US economic data, which may affect the Fed's interest rate outlook for 2025 and the policies of incoming President Trump.

I think this is just a holiday trading slump. Maybe there will be some settlements before the end of the year, "said Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals.

Grant said that it is expected that the geopolitical tensions will last until next year, and central banks will continue to buy gold, while the U.S. debt situation may deteriorate, and the deficit of the Trump government will expand, thus stimulating the continued demand for gold as a safe haven.

Due to geopolitical uncertainty and US interest rate cuts, investors have become fond of gold, and the price of gold has surged nearly 27% this year, reaching a historic high of $2790.15 on October 31st.

As Trump prepares to take office in January next year, people increasingly expect a major policy shift in the United States by 2025, including potential tariffs, deregulation, and tax changes.

Earlier this month, Federal Reserve Chairman Jerome Powell lowered interest rates by a quarter of a percentage point, which is consistent with market expectations and suggests caution towards further rate cuts.

Next week, a series of US economic data will be released, including job vacancy data, ADP employment report, minutes of the Federal Reserve's FOMC meeting in December, and the US employment report, to measure the health of the economy.

Gold is seen as a tool to hedge against inflation and volatility, but high interest rates reduce the attractiveness of holding this non yielding asset.

In terms of other precious metals, spot silver fell 1.3% to $28.98 per ounce, while platinum fell 1.5% to $905.62, hitting a three-month low on Friday. Palladium fell 1% to $902.16.