MUMBAI, 13 Jan (Commoditiescontrol): Gold prices remained stable on Monday, with spot gold holding at $2,689.09 per ounce, close to the one-month high reached last Friday. Meanwhile, U.S. gold futures edged up by 0.2% to $2,719.50. The market steadiness reflects a balance between strong economic data and lingering policy uncertainties.
The stronger-than-expected U.S. jobs report released on Friday reaffirmed the Federal Reserve's cautious stance on interest rate cuts. Concerns over inflation are mounting, fueled by incoming U.S. President Donald Trump’s proposed policies, including potential significant tariff hikes on imports. These factors have continued to drive safe-haven demand for gold.
Traders have now fully factored in that the Federal Reserve will maintain interest rates at its upcoming meeting this month. Current expectations suggest only one rate cut this year, likely in June. While gold is often viewed as a hedge against inflation, its appeal can be tempered by higher interest rates, which increase the attractiveness of yield-bearing assets over the non-yielding bullion.
The focus now shifts to the release of the monthly U.S. consumer price index (CPI) later this week, which could provide further insight into inflation trends. Additionally, remarks from several Federal Reserve officials scheduled this week are expected to offer more clarity on the central bank’s monetary policy outlook.
In the broader precious metals market, spot silver dipped slightly by 0.1% to $30.36 per ounce, and platinum fell by 0.3% to $962.18. On the other hand, palladium bucked the trend, gaining 0.3% to reach $950.90.
With the Federal Reserve maintaining a cautious approach and geopolitical uncertainties persisting, gold’s role as a safe-haven asset remains prominent. However, market participants will carefully monitor inflation data and policy developments, which are likely to influence gold’s trajectory in the weeks ahead.
(By Commoditiescontrol Bureau; +91 98201 30172)
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