Gold Holds Steady Ahead of US Data

6 Jan 2025 , 09:26 AM

As investors awaited a plethora of U.S. economic data that is expected to be released this week for clues on the Federal Reserve’s interest rate stance, gold prices remained stable on Monday.

Spot gold was stable at $2,639.56 per ounce. At $2,652.00, U.S. gold futures dropped 0.1%.

The U.S. jobs data, which is due on Friday, is the market’s main focus. After the U.S. central bank shocked markets last month by lowering its expected rate reduction for 2025, the data may offer additional hints about the Fed’s interest rate plans.

The minutes of the Fed’s most recent policy meeting and information on ADP hiring and job vacancies are also anticipated by investors.

Gold is a hedge against inflation and geopolitical unpredictability and thrives in an atmosphere with low interest rates.

On January 20, U.S. President-elect Donald Trump is scheduled to take office again, and it is anticipated that his protectionist policies and proposed tariffs will increase inflation.

This would cause the Fed to reduce interest rates more slowly, which would restrict the upside of gold. Due to ongoing inflation, the Fed has only forecasted two rate decreases for 2025 after implementing three in 2024.

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