PT Rifan Financindo Berjangka – Gold Holds Positive on U.S. Rate Uncertainty
Gold held on to a four-day gain, with traders seeking refuge in safe-haven assets as risk-off sentiment gripped markets amid renewed uncertainty over the Federal Reserve’s interest rate path.
Gold was trading near its highest level in a month around $2,690 an ounce, after rising 1.9% last week despite headwinds from firmer bond yields and a stronger dollar. A report on Friday showed remarkable resilience in the U.S. labor market, leading economists at several major banks to revise down their forecasts for additional interest rate cuts.
While higher borrowing costs are typically negative for the non-interest-bearing precious metal, investors are bracing for more volatility ahead of Donald Trump’s return to the White House. A slew of stronger-than-expected data last week prompted traders to cut equity risk in favor of safe-haven assets such as the dollar and gold, Chris Weston, head of research at Pepperstone Group Ltd., said in a note
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Investors now turn their attention to U.S. inflation figures due later in the week, with the consumer price index report due on Wednesday. They will also be watching the New York Fed’s one-year inflation expectations on Monday, producer prices on Tuesday and jobless claims on Thursday.
Spot gold was little changed at $2,689.71 an ounce at 8:35 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium were steady, while platinum declined.
Source: Bloomberg
Gold Rebounds on Trump Policy Uncertainty Despite Robust US Jobs Data
Gold prices rebounded on Friday as uncertainty surrounding the incoming Trump administration’s policies lifted safe-haven appeal, even as a stronger-than-expected U.S. employment data reinforced expectations the Federal Reserve might not cut interest rates as aggressively this year.
Spot gold was up 0.6% at $2,686.24 per ounce as of 01:57 p.m. EST (1857 GMT), while U.S. gold futures settled 0.9% higher at $2,715.00.
Gold prices briefly slipped to $2,663.09 an ounce after data showed the U.S. added 256,000 jobs last month, compared with economists’ estimate of a rise of 160,000. The unemployment rate stood at 4.1%, compared with a forecast of 4.2%.
Bullion prices, however, quickly rebounded and hit their highest levels since Dec. 12, poised for a weekly gain of more than 1.7%.
The dollar rallied while U.S. stock futures fell sharply after the jobs data. Markets show traders now expect the Fed to cut interest rates by just 30 basis points over the course of this year, compared with cuts worth about 45 basis points before the data.
As President-elect Donald Trump’s Jan. 20 inauguration approaches, investors are anxious about his vow to impose tariffs on a wide range of imports, fearing they could fuel inflation and further limit the Fed’s ability to lower rates.
While bullion is prized as a safeguard against inflation, high interest rates dull its allure as a non-yielding asset.
Spot silver gained 0.9% to $30.38 per ounce, platinum fell 0.2% to $959.10 and palladium added 2.2% to $943.93. All three metals were headed for weekly gains. PT Rifan Financindo Berjangka.
Source : Reuters