Spot gold climbed 0.4 per cent to $2,679.65 per ounce, as of 1250 (GMT) after hitting its highest level since December 13 earlier in the session. Prices have risen by more than 1 per cent this week. U.S. gold futures rose 0.6 per cent to $2,707.00, Reuters reported.
The most bullish outcome for gold is the narrative of ballooning fiscal deficits and unsustainable debt weighing on the U.S. dollar in the longer term and causing doubts about its role as the world’s reserve currency, said Carsten Menke, analyst at Julius Baer, according to Reuters report.
Trump will take office on January 20 and has vowed to implement tariffs, which could ignite trade wars and lead to inflation.
Bullion is considered a hedge against inflation, but higher interest rates blunt its appeal as it yields no interest.
The short-term focus is on the U.S. payrolls report due at 1330 GMT. According to a Reuters survey, non-farm payrolls are expected to have increased by 160,000 in December, following a jump of 227,000 in November.”A stronger-than-expected NFP report that further dilutes expectations for Fed rate cuts in 2025 could prompt some immediate paring of gold’s recent advance. If the U.S. jobs market shows signs of cooling, perhaps allowing the Fed to ease off on its hawkish stance, that could send gold closer to $2,700,” said Exinity Group chief market analyst Han Tan.Spot silver gained 0.7 per cent to $30.33 per ounce, platinum firmed 0.3 per cent to $961.40 and palladium added 2.3 per cent to $948.04. All three metals were headed for weekly gains.
FAQs
Q1. What are current gold prices?
A1. Current gold prices rose by more than 1 per cent this week. U.S. gold futures rose 0.6 per cent to $2,707.00.
Q2. When is Donald Trump’s inauguration?
A2. Donald Trump will take office on January 20 and has vowed to implement tariffs, which could ignite trade wars and lead to inflation.
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