Gold prices went down on Monday morning as tensions in the Middle East calmed, reducing the need for safe investments. People are also waiting for Donald Trump to be inaugurated and to understand more about his government plans.
– Current Prices: Spot gold fell by 0.4% to $2,690.81 per ounce. U.S. gold futures decreased by 0.5% to $2,734.90.
– Ceasefire News: Hamas freed three Israeli hostages, and in return, Israel released 90 Palestinian prisoners. This was part of a ceasefire that started after a long conflict in the Gaza Strip, which affected the entire region.
– Trump’s Inauguration: Investors are looking forward to Trump’s inauguration later today. His plans for trade tariffs could raise prices and lead to trade disputes, making gold more appealing as a safe investment.
– Gold as a Safe Investment: Gold is often seen as a way to protect against inflation, but if interest rates go up, it can be less attractive.
– Interest Rates Outlook: Economists think the U.S. Federal Reserve will keep interest rates steady on January 29 but might start lowering them in March.
– Increased Gold Stocks: Gold stocks in warehouses have gone up by one-third in the past six weeks as traders prepare for potential import tariffs under Trump.
– Speculation in Gold: Gold speculators raised their long positions by almost 18,000 contracts recently, according to reports.
– India and China Demand: In India, demand for gold has dropped as prices have increased, while in China, people are buying more gold ahead of the Lunar New Year festival.
– SPDR Gold Trust: This is the world’s biggest gold-backed fund, and they reported an increase in holdings from 868.78 tons to 879.12 tons.
– Other Metals: Alongside gold, silver fell by 0.7% to $30.13 per ounce, palladium dropped by 0.3% to $944.25, and platinum slipped by 0.2% to $940.05.
Leave a Reply