GOLD prices held steady on Monday (Jan 6) as investors awaited a slew of US economic data due out this week for guidance on the US Federal Reserve’s interest rate stance.
Spot gold was steady at US$2,639.56 per ounce, as at 0034 GMT. US gold futures fell 0.1 per cent to US$2,652.00.
Market focus is on the US jobs report, due on Friday. The data could provide more clues to the Fed’s interest rate plans after the US central bank last month rattled markets by reducing its projected rate cuts for 2025.
Investors are also awaiting data on ADP hiring and job openings, as well as minutes of the Fed’s last policy meeting.
Gold flourishes in a low-interest-rate environment and serves as a hedge against geopolitical uncertainties and inflation.
US president-elect Donald Trump is set to return to office on Jan 20 and his proposed tariffs and protectionist policies are expected to fuel inflation.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
This could prompt the Fed to go slow on rate cuts, limiting gold’s upside. After three rate cuts in 2024, the Fed has projected only two reductions for 2025 due to persistent inflation.
The US central bank’s benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2 per cent target, Richmond Federal Reserve president Thomas Barkin said on Friday.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.17 per cent to 871.08 tonnes on Friday from 872.52 tonnes on Thursday.
Gold discounts in India remained steady last week as elevated prices kept buyers away, while Chinese dealers charged higher premiums in anticipation of stronger demand ahead of the upcoming Chinese New Year.
Spot silver rose 0.1 per cent to US$29.64 per ounce, platinum was down 0.7 per cent at US$931.70, and palladium shed 0.4 per cent to US$918.63. REUTERS
Share with us your feedback on BT’s products and services
