Gold prices inched upward in Asian trading on Monday as market participants cautiously awaited President-elect Donald Trump’s inauguration speech. Spot Gold rose 0.3% to $2,709.3 per ounce, while February Gold Futures added 0.1% to trade at $2,750.01 an ounce by 01:13 ET (06:13 GMT).
Key Market Dynamics
Safe-Haven Appeal:
Gold, often considered a safe-haven asset, has hovered near a one-month peak, supported by expectations of additional Federal Reserve rate cuts amid subdued U.S. inflation data.
Dollar Weakness:
The U.S. Dollar Index fell 0.3% during Asian hours, making gold more affordable for international buyers and boosting demand.
Federal Reserve Policy Expectations:
Recent easing in U.S. price pressures has heightened speculation about a more accommodative monetary policy stance, typically favorable for gold prices.
Trump Administration Impact
As Trump prepares to take office, traders are bracing for potential market volatility driven by his policy announcements. Analysts suggest:
A forceful approach could strengthen the U.S. dollar, potentially weighing on gold prices.
A gradual policy rollout might weaken the dollar, providing additional support for the yellow metal.
Geopolitical Influences
Geopolitical developments, including a ceasefire between Israel and Hamas, have tempered gold’s recent gains. Reduced safe-haven demand following easing tensions could limit upward momentum.
Resources for Tracking Gold Trends
Investors can monitor gold price movements and key market factors using advanced analytics. APIs like the Sector Historical Overview API offer historical market trends that provide context for precious metal performance, while the Economics Calendar API highlights upcoming economic events that could influence gold prices.
