Gold flat amid Trump policy uncertainty, strong US data

GOLD prices held steady on Monday (Jan 13), caught between uncertainty around the incoming Trump administration’s policies boosting safe-haven demand and a strong US employment report that supported the Federal Reserve’s caution on future rate cuts.

Spot gold held ground at US$2,690.49 per ounce, as at 0028 GMT, hovering near the high since Dec 12 hit on Friday.

US gold futures gained 0.2 per cent to US$2,720.20.

The upbeat jobs report supported the Fed’s cautious stance towards further policy easing this year amid mounting fears that pledges by president-elect Donald Trump to impose or massively raise tariffs on imports could stoke inflation.

Non-farm payrolls increased by 256,000 jobs last month, the most since March 2024, the Labor Department’s Bureau of Labor Statistics said.

Following the data, the US rate futures market fully priced in a pause to the Fed’s easing cycle at the January meeting, according to LSEG estimates. The market has also priced in just one cut this year, with the first-rate move expected in June.

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Bullion is used as a hedge against inflation, although higher interest rates reduce the non-yielding asset’s appeal.

Investors will closely watch the release of the monthly consumer price index due later in the week. Several Fed officials are also scheduled to speak this week, including John Williams on Wednesday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.66 per cent to 876.82 tonnes on Friday from 871.08 tonnes on Wednesday.

Elsewhere, gold discounts in India widened last week after consumers stayed away as local prices rose, whereas the upcoming Chinese New Year stimulated buying in other major Asian markets.

Spot silver traded flat at US$30.38 per ounce, platinum dropped 0.2 per cent to US$962.73, while palladium gained 0.1 per cent to US$949.12. REUTERS