Gold Price Advances Amid Safe-Haven Demand Ahead of US NFP
Gold's price surged for the third straight day and edged up 0.35% due to safe-haven demand spurred by concerns over Donald Trump’s proposed policies, while the United Kingdom (UK) dealt with a budget crisis. The XAU/USD trades at $2,671 at the time of writing.
On Wednesday, CNN revealed that United States (US) President-elect Donald Trump might consider declaring a national economic emergency, which would provide him with a legal justification to impose tariffs on adversaries and US allies. Earlier during Thursday’s overnight session, UK Gilt yields at the long end of the curve skyrocketed above 5%, their highest level since 1998.
In the meantime, Federal Reserve (Fed) officials are grabbing the headlines as US financial markets remained closed for former US President Jimmy Carter’s National Day of Mourning.
Fed Governor Michelle Bowman maintained a hawkish stance, saying the central bank should be cautious in adjusting interest rates, while Kansas City Fed Jeffrey Schmid added that rates are “near” neutral.
Earlier, Philadelphia Fed Patrick Harker revealed that the US central bank could pause amid uncertainty, while Boston Fed Susan Collins said the current outlook suggests a gradual approach to rate cuts.
This week, traders are eyeing the release of December US Nonfarm Payrolls data and the University of Michigan (UoM) Consumer Sentiment.
Source : FXStreet
