Yahoo Finance UK’s Pedro Goncalves writes:
Gold prices remained steady on Monday as traders braced for increased volatility with the start of Trump’s second term. Anticipated policy announcements from Trump are expected to significantly influence market dynamics.
The spot price of gold edged up by 0.1% to $2,706.72 per ounce, while gold futures held relatively unchanged at $2,749.00 per ounce.
The precious metal, often seen as a safe-haven asset, has held steady near a one-month peak, supported by subdued US inflation data that has fuelled expectations for further rate cuts from the Federal Reserve.
Market sentiment is currently shaped by the interplay between potential US policy shifts and the Fed’s monetary stance. Analysts suggest that a robust start to Trump’s second term could strengthen the dollar, while a more gradual approach may weaken it, which could in turn influence gold prices.
“The uncertainty in regard to the policies that president Trump is going to put in place has been one of the supportive factors for gold,” said David Meger, director of metals trading at High Ridge Futures.