Gold price holds firm as Trump's 2.0 era begins
Gold prices climbed moderately on Monday amid thin liquidity conditions after Donald Trump was sworn in as the 47th President of the United States (US). The Greenback weakened during his speech as he set aside his aggressive tariff policies, which could stoke inflation and prevent the Federal Reserve (Fed) from easing policy. At the time of writing, XAU/USD trades at $2,709, up 0.27%.
US President Donald Trump declared a national emergency on energy and at the southern border to overhaul energy and immigration policies. The former is aimed at filling up strategic reserves and exporting American oil, while the immigration policy proposes to return millions of “criminal aliens to the places from which they came.”
In the meantime, his speech eased his rhetoric on trade, but an article in The Wall Street Journal mentioned the issuance of a broad memorandum that directs federal agencies to study trade policies and evaluate US trading relationships with China, Canada and Mexico.
The US Dollar weakened to a nine-day low during the inauguration speech, according to the US Dollar Index (DXY), which measures the buck’s performance against a basket of peers. The DXY tumbled to 107.95 before matching those earlier losses and recovering above the 108.00 figure.
This week, the US economic docket will feature Initial Jobless Claims data, S&P Global Flash PMIs and housing data.(Cay)
Source; Fxstreet
