Gold Steady Amid Market Concerns
Gold steadied as traders weighed risks to global trade under the new U.S. administration, with President-elect Donald Trump denying reports that he might moderate plans for across-the-board tariffs.
Bullion held near $2,634 an ounce, after ending slightly lower in the previous two sessions. Uncertainty about a much-anticipated policy move helped lift the 10-year Treasury yield to its highest since May on Monday, while the dollar fell. That was a mixed bag for gold, which typically faces headwinds from higher yields but support from a weaker U.S. currency.
Bullion surged 27% last year at a record high driven in part by U.S. monetary easing, though the rally lost momentum after Trump’s U.S. election victory buoyed the dollar. Bulls now face the prospect of less impressive gains this year, with Goldman Sachs Group Inc. pushing back its target for gold to reach $3,000 by mid-2026 on expectations for fewer Federal Reserve cuts. Against that backdrop, bullish hedge fund bets fell to a six-month low, Commodity Futures Trading Commission data showed. Spot gold fell 0.1% to $2,633.61 an ounce as of 8:23 a.m. in Singapore.
The Bloomberg Dollar Spot Index was flat, after a 0.6% loss in the previous session. Silver, palladium and platinum were steady.
Traders await Friday’s U.S. jobs report, which is expected to show a moderate but still healthy labor market. The data is unlikely to change views that the Fed will take a more cautious approach to cutting interest rates in 2025 amid renewed concerns about inflation. The minutes of the Fed’s December meeting are also due this week.
Source: Bloomberg
