Gold Prices Steady on Positive Levels, US NFP in Focus
Gold (XAU/USD) prices maintained their positive bias heading into the European session on Friday (10/1) and are currently trading near four-week highs touched the previous day. Concerns about US President-elect Donald Trump’s trade tariffs, along with geopolitical risks, turned out to be the key factors that undermined the safe-haven demand for the commodity for the fourth straight day. Moreover, Trump’s expansionary policies are expected to boost inflation, further benefitting the precious metal’s status as a hedge against rising prices.
Meanwhile, the Federal Reserve’s (Fed) hawkish signal that it will slow down the pace of interest rate cuts in 2025 remained supportive of the US Treasury bond yields and helped the US Dollar (USD) gain some follow-through traction. This, in turn, might hold traders from placing aggressive bullish bets around the non-yielding Gold price and cap any further upside. Investors might also prefer to wait for the release of the closely watched US Nonfarm Payrolls (NFP) report before placing any fresh directional bets.
Source: FXStreet