Gold prices remain steady as investors await key US economic data
(MENAFN) Gold prices remained stable on Monday as investors turned their attention to a series of key U.S. economic data releases this week, which could offer insights into the Federal Reserve's approach to interest rates. By 00:34 GMT, spot gold prices were steady at USD2,639.56 per ounce, while U.S. gold futures experienced a slight decline of 0.1 percent, trading at USD2,652 per ounce. The market is closely monitoring these developments for any indications of future monetary policy shifts.
A major focus for investors is the U.S. jobs report scheduled for release on Friday. This report is expected to provide critical clues regarding the Federal Reserve’s next steps on interest rates, particularly after the central bank unsettled markets last month by revising its 2025 rate cut projections. Additionally, the ADP employment report, job openings data, and the minutes from the Federal Reserve's most recent monetary policy meeting are also being eagerly anticipated.
Gold typically benefits from lower interest rates, as they reduce the opportunity cost of holding the non-yielding asset. The precious metal is also favored as a hedge against inflation and during periods of political uncertainty. With President-elect Donald Trump set to return to the White House on January 20, his proposed tariffs and protectionist trade policies are expected to fuel inflation, potentially influencing the Federal Reserve’s stance on interest rate cuts.
In the broader precious metals market, silver saw a modest increase of 0.1 percent, trading at USD29.64 per ounce. Meanwhile, platinum experienced a sharper decline of 0.7 percent to reach USD931.70 per ounce, and palladium fell 0.4 percent, trading at USD918.63 per ounce. These movements reflect varying dynamics across the precious metals sector amid ongoing economic and political uncertainties.
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