Gold Holds Steady
Gold held steady around $2,680 an ounce on Monday (13/1), supported by safe-haven demand amid uncertainty surrounding the new U.S. administration’s policies. President-elect Donald Trump takes office on Jan. 20, and his proposed tariffs could fuel trade wars and inflation, creating a favorable environment for the precious metal, which is widely considered a hedge against inflation.
However, a stronger-than-expected U.S. jobs report on Friday pointed to an improving labor market and a strong economy, reinforcing expectations that the Federal Reserve could continue with a slower pace of interest rate cuts this year. This could put downward pressure on gold, as higher interest rates reduce the appeal of holding non-yielding assets. Investors are now closely watching the release of U.S. CPI inflation data later this week, which could provide further insight into the direction of the Fed’s monetary policy. (AL)
Source: Trading Economics
