Golden Financier
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
  • Economy

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Popular Topics
    • From escalation to reset? What really happened during the US–China trade talks in Geneva
    • Looming oil surplus could stall price recovery, say analysts
    • How China is rebranding Venezuelan oil as Brazilian to evade sanctions
    • Trump to sign executive order slashing drug prices today: Asian pharma stocks fall, analysts flag downsides
    • World’s biggest 2025 IPO? CATL aims for $5.3B in Hong Kong listing
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    Golden Financier
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Economy
    • Economy

    Gold traders brace for volatility ahead of Trump’s inauguration day

    • January 20, 2025
    • admin

    Gold prices were little changed on Monday as traders awaited the inauguration speech of President-elect Donald Trump later today. 

    “The US Dollar (USD) kicks off the new week on a softer note and erodes a part of Friday’s positive move amid bets that the Federal Reserve (Fed) will cut interest rates twice this year amid signs of abating inflation in the US,” Haresh Menghani, editor at FXstreet, said in a report. 

    This, along with uncertainty over US President-elect Donald Trump’s tariff plans, lifts the safe-haven precious metal back above the $2,700 mark in the last hour.

    Traders were anticipating to get some clues about Trump’s policies during the inauguration speech later on Monday. Gold prices could be volatile as Trump begins his second term as the US president. 

    At the time of writing, the February gold contract on COMEX was largely steady at $2,748.31 per ounce. 

    Trump 2.0: traders brace for volatility

    Gold traders are preparing for a period of heightened volatility as President Trump embarks on his second term in office. 

    The President’s forthcoming policy announcements are expected to have a significant impact on market dynamics, and traders are positioning themselves accordingly.

    Gold, often seen as a safe-haven asset in times of economic uncertainty, has recently seen its price stabilize near a one-month high. 

    This price stability has been attributed in part to subdued US inflation data, which has led to speculation that the Federal Reserve may cut interest rates in the near future.

    The current market sentiment is being shaped by a complex interplay of factors, including potential policy changes from the Trump administration and the Federal Reserve’s monetary policy. 

    Some analysts suggest that a strong and decisive start to Trump’s second term could bolster the US dollar, which could in turn put downward pressure on gold prices. 

    Conversely, a more gradual and measured approach from the administration could weaken the dollar, potentially leading to an increase in gold prices.

    Fed’s rate cut uncertainty

    “Interest rate expectations have recently come back into focus. Following the lower-than-expected US inflation data, the market is again pricing in slightly more Fed rate cuts,” Carsten Fritsch, commodity analyst at Commerzbank AG, said. 

    If the Fed decides to cut interest rates, it could weaken the dollar and make gold more attractive to investors. 

    On the other hand, if the Fed maintains its current interest rate policy or raises rates, it could strengthen the dollar and put downward pressure on gold prices.

    In addition to these factors, geopolitical tensions, global economic growth, and investor sentiment can all impact gold prices. As such, gold traders are closely monitoring developments in these areas and adjusting their strategies accordingly.

    Gold’s rally has been tempered after Israel and Hamas agreed to a ceasefire agreement, which could dampen demand for safe-haven assets. 

    Menghani said:

    Traders might also refrain from placing aggressive directional bets ahead of Trump’s inaugural address later this Monday and a US holiday in observance of Martin Luther King Jr. Day.

    Can gold prices hit $2,800?

    Analysts at FXstreet said gold prices could climb further if the yellow metal decisively breach the $2,725 per ounce mark. 

    At present prices are around $2,750 per ounce, and the immediate resistance was $2,762. 

    “The XAU/USD might eventually aim towards challenging the all-time peak, around the $2,790 region touched in October 2024,” Menghani added.

    Source: FXstreet

    However, the key was today’s speech by Trump, which is likely to shape both commodity and financial markets. 

    The post Gold traders brace for volatility ahead of Trump’s inauguration day appeared first on Invezz


    admin

    Previous Article
    • Stock

    Asian stocks soar ahead of Trump inauguration: Hang Seng up 2%, Nikkei teases 39,000

    • January 20, 2025
    • admin
    View Post
    Next Article
    • Economy

    Stay or leave? Western companies in Russia grapple with next steps under Trump administration

    • January 20, 2025
    • admin
    View Post

      Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


      By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
      Popular Topics
      • From escalation to reset? What really happened during the US–China trade talks in Geneva
      • Looming oil surplus could stall price recovery, say analysts
      • How China is rebranding Venezuelan oil as Brazilian to evade sanctions
      • Trump to sign executive order slashing drug prices today: Asian pharma stocks fall, analysts flag downsides
      • World’s biggest 2025 IPO? CATL aims for $5.3B in Hong Kong listing

      Input your search keywords and press Enter.