Gold Trades Sideways Amidst Fed Uncertainty

9 Jan 2025 , 09:44 AM

As investors anticipated U.S. data to provide clarity on the Federal Reserve’s interest rate stance for 2025, increasing rates and a stronger currency weighed on gold prices, which remained muted on Thursday.

As U.S. bond yields continued to rise Wednesday in response to a report that President-elect Donald Trump was considering using emergency procedures to enable a fresh tariff program, the dollar appreciated.

A weaker-than-expected U.S. private employment report suggested that the Fed might be less cautious about easing rates this year, which caused the bullion to reach a near four-week high in the previous session.

Spot gold fell 0.1% to $2,659.27 an ounce. U.S. gold futures increased to $2,677.10, up 0.2%.

According to the ADP National Employment Report, the increase of private payrolls in the United States fell significantly a month ago, from 146,000 in November 2024 to 122,000.

For additional clues about the Fed’s policy direction, the market now awaits Friday’s U.S. jobs data.

Policymakers agreed that inflation was likely to continue to decrease this year, according to the minutes of the Fed’s most recent meeting. As they grappled with the possible impact of Trump’s plans, they also saw an increasing possibility that price pressures would remain persistent.

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