Gold Steady as Trump’s Remarks Create Market Uncertainty
Gold prices remain stable as traders assess the impact of Trump’s comments on global trade
Gold, Donald Trump, US Markets, Singapore, Inflation
Singapore: Gold is holding steady as traders mull over the risks to global trade with the new US administration. President-elect Donald Trump has denied rumors about softening his plans for tariffs.
Gold is hovering around $2,634 an ounce, just a tad lower than the previous sessions. The uncertainty surrounding upcoming policies has pushed 10-year Treasury yields to their highest since May, while the dollar took a dip. This mixed bag is a bit of a double-edged sword for gold, which usually struggles with rising yields but gets a boost from a weaker dollar.
Last year, gold had a fantastic run, jumping 27% thanks to US monetary easing. But after Trump’s election win, the dollar gained strength, and gold’s momentum slowed down. Now, it seems like the bulls might not see the same impressive gains this year. Goldman Sachs has even pushed back its gold target to mid-2026, expecting fewer cuts from the Federal Reserve.
With all this in mind, hedge funds are pulling back on their bullish bets, hitting a six-month low according to the Commodity Futures Trading Commission.
As of 8:23 a.m. in Singapore, spot gold dipped slightly to $2,633.61 an ounce. The Bloomberg Dollar Spot Index remained steady after a 0.6% drop in the last session. Other precious metals like silver, palladium, and platinum are also holding their ground.
Traders are now looking forward to Friday’s US jobs report, which should show a labor market that’s still healthy but moderating. This data likely won’t change the Fed’s cautious stance on rate cuts in 2025, especially with inflation concerns creeping back. Plus, we can expect the minutes from the Fed’s December meeting to be released this week.
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