Gold has been trading firmly above $2,600 since the end of last week despite the lack of strong buying activity.
However, geopolitical tensions and trade wars continue to favor XAU/USD and the Fed's shift in 'hawkish' tone that remains supportive of the USD's strengthening remains high.
At 9.05 am, gold prices were at $2,624.83, up 0.32% since it opened in early Asian trading on Thursday.
The positive momentum for the precious yellow metal followed last week's Fed signal to slow the pace of interest rate cuts in 2025, which helped the US dollar stand firmer near a two-year high and restrictions on gold.
However, geopolitical risks stemming from the ongoing Russia-Ukraine war, tensions in the Middle East and trade war fears continue to offer some support to gold prices as a safe haven.
Additionally, the pullback in US Treasury bond yields remained supportive of a moderate tone amid thin trading volumes during Christmas Eve.
