PT Rifan Financindo Berjangka – Gold Edges Lower as Caution Takes Hold Before Trump Grabs Helm
Gold edged lower, with many traders cautious that Donald Trump’s inauguration as US president later Monday could herald an era of sweeping tariffs, trade wars, and widespread market upheaval.
The precious metal traded near $2,695 an ounce, after clocking up a third weekly gain. It was boosted last week by softer-than-expected US inflation that saw investors reboot bets on the Federal Reserve easing rates further this year. Looser monetary policy is positive for gold as it doesn’t pay interest.
Investors are also concerned about the new president’s immigration policy and scope for sharper geopolitical tensions, with Trump already taking aim at some traditional US allies including Canada, Mexico and Europe. While that could boost gold’s value as a haven, it may also lift the US dollar, presenting a headwind.
Gold set a series of records last year as the Fed pivoted toward rate cuts and heightened geopolitical tensions drove haven demand. Central-bank buying has also been a key driver, with 97% of institutions expecting to maintain or raise gold reserves this year, according to a survey by the World Gold Council.
In the Middle East, meanwhile, a long-delayed ceasefire in the Gaza war began taking hold as Hamas released three female hostages in exchange for 90 Palestinians held in Israeli prisons.
Spot gold was down 0.3% at $2,695.31 an ounce at 8:38 a.m. in Singapore, after a weekly gain of 0.5%. The Bloomberg Dollar Spot Index advanced 0.1%. Silver, palladium and platinum all dipped.
Source : Bloomberg
Gold Poised for Third Weekly Gain as Markets Look to Trump Inauguration
Gold prices were pressured by an uptick in the U.S. dollar on Friday, but remained on track for a weekly gain as uncertainties around incoming President Donald Trump’s policies and renewed bets of further rate cuts lifted bullion above the key $2,700 level.
Spot gold eased 0.4% to $2,701.03 per ounce by 03:10 p.m. ET (2010 GMT), while U.S. gold futures settled 0.1% lower to $2,748.70.
“The pullback today is not significant, but more of a profit-taking move than anything else, maybe helped by the dollar being a little higher in the day, adding some light pressure,” said David Meger, director of metals trading at High Ridge Futures.
Gold hit over one-month high on Thursday, $65.6 away from its all-time high of $2,790.15 hit in October. Prices have gained 0.5% so far for the week, their third straight weekly gain after softer-than-expected U.S. core inflation figures on Wednesday intensified speculation of more than a single rate cut from the Fed.
Traders are pricing in two rate cuts by year-end, with Fed Governor Christopher Waller hinting at the possibility of more cuts should economic data weaken further.
Markets now keenly await Trump’s inauguration on Jan. 20, and his broad trade tariffs are expected to further ignite inflation and trigger trade wars, potentially increasing bullion’s safe-haven appeal.
“The uncertainty in regard to the policies that President Trump is going to put in place has been one of the supportive factors for gold,” Meger added.
Non-yielding gold, often seen as a hedge against inflation and political uncertainty, benefits from lower interest rates.
“There are question marks about the state of tariffs, how they’ll be implemented. Many investors are looking to gold as a way of hedging some of the downside risks, should these new policies be damaging to growth,” said Nitesh Shah, commodity strategist at WisdomTree.
Spot silver slipped 2% to $30.17 per ounce, palladium rose 1% to $949.99 while platinum added 0.9% to $940.28. PT Rifan Financindo Berjangka.
Source : Reuters