Gold Holds Positive on U.S. Rate Uncertainty
Gold held on to a four-day gain, with traders seeking refuge in safe-haven assets as risk-off sentiment gripped markets amid renewed uncertainty over the Federal Reserve’s interest rate path.
Gold was trading near its highest level in a month around $2,690 an ounce, after rising 1.9% last week despite headwinds from firmer bond yields and a stronger dollar. A report on Friday showed remarkable resilience in the U.S. labor market, leading economists at several major banks to revise down their forecasts for additional interest rate cuts.
While higher borrowing costs are typically negative for the non-interest-bearing precious metal, investors are bracing for more volatility ahead of Donald Trump’s return to the White House. A slew of stronger-than-expected data last week prompted traders to cut equity risk in favor of safe-haven assets such as the dollar and gold, Chris Weston, head of research at Pepperstone Group Ltd., said in a note
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Investors now turn their attention to U.S. inflation figures due later in the week, with the consumer price index report due on Wednesday. They will also be watching the New York Fed’s one-year inflation expectations on Monday, producer prices on Tuesday and jobless claims on Thursday.
Spot gold was little changed at $2,689.71 an ounce at 8:35 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium were steady, while platinum declined.
Source: Bloomberg
