Gold prices were low on Thursday because the U.S. dollar got stronger and bond yields went up. Investors are waiting for U.S. economic data to better understand how the Federal Reserve might handle interest rates in 2025.
– The price of spot gold dropped slightly by 0.1%, costing $2,659.27 per ounce. However, U.S. gold futures went up by 0.2%, reaching $2,677.10.
– The dollar gained value on Wednesday after news that President-elect Donald Trump might use emergency measures to create a new tariff program, which is affecting bond yields.
– Gold prices reached a nearly four-week high recently because a lower-than-expected employment report suggested the Federal Reserve might not be in a rush to raise rates this year.
– A report showed U.S. private job growth slowed down significantly last month, dropping to 122,000 from 146,000 in November 2024.
– The market is eagerly waiting for the U.S. jobs report on Friday, which could give more hints about the Federal Reserve’s decisions.
– Meeting notes from the Fed showed that members believe inflation might continue to decrease this year, but they are concerned about ongoing price pressures due to Trump’s possible policies.
– Trump will become president on January 20, and his planned tariffs might increase inflation. While gold is often seen as a safe investment against inflation, high-interest rates can make it less appealing.
– In other news, physically-backed gold exchange-traded funds (ETFs) saw their first inflow in four years, even though their overall holdings fell by 6.8 metric tons, according to the World Gold Council.
– Additionally, the prices for silver dropped by 0.3% to $30.03 per ounce, platinum fell by 0.5% to $951.34, and palladium decreased by 0.5% to $924.
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