Gold Stands Firm Amidst Strengthening Dollar

8 Jan 2025 , 11:03 AM

Following U.S. statistics that indicated the Federal Reserve may reduce the pace of its rate decreases this year, higher yields and a stronger dollar put pressure on gold prices, which remained steady on Wednesday.

After climbing as much as 1% in the previous session, spot gold held steady at $2,650.62 per ounce. At $2,665, U.S. gold futures remained steady.

Following better-than-expected data on Tuesday that indicated a robust economy, the dollar gained strength and benchmark 10-year Treasury yields reached an eight-month high.

In November, there were 8.098 million job opportunities in the United States, more than the 7.7 million increases predicted and more than the 7.839 million in October.

For additional hints about the Fed’s policy direction, the market is now waiting for Friday’s U.S. jobs data. Investors are also keeping an eye on ADP employment figures and the Fed’s December meeting minutes, which are coming later today.

With most of the officials worried that inflation would flare up again, the Fed’s most recent predictions from December suggested a change to a more conservative pace of rate cuts this year.

Although high rates lessen the appeal of the non-yielding asset, bullion is nonetheless seen as an inflation hedge.

For feedback and suggestions, write to us at [e-mail]