Gold prices rise ahead of Trump’s inauguration; traders prepare for volatility By Investing.com
Investing.com – Gold prices rose in Asian trading on Monday as traders cautiously awaited US President-elect Donald Trump’s inaugural speech, expecting insights into his administration’s policies and potential signals on future interest rates.
were up 0.3% at $2,709.3 an ounce, while February expirations were up 0.1% at $2,750.01 an ounce by 01:13 ET (0613 GMT).
Traders are bracing for volatility with the incoming Trump administration
Gold traders are bracing for increased volatility as Trump begins his second term, and his expected policy announcements are expected to affect market dynamics.
The precious metal, traditionally seen as a safe-haven asset, saw prices stabilize near a one-month high, supported by muted US inflation data raising expectations for further rate cuts by the Federal Reserve.
Market sentiment is currently shaped by the interplay between potential US policy changes and the Federal Reserve’s monetary stance. Analysts suggest that a strong start to Trump’s term could further support the dollar, while a gradual approach could weaken it, affecting gold prices.
It was down 0.3% in Asian hours on Monday, lending support to the yellow metal.
A weaker dollar usually boosts gold prices because it makes the metal cheaper for buyers using other currencies.
In addition, recent data indicating easing price pressures have led investors to expect more accommodative monetary policy, which has traditionally supported gold prices.
Despite these factors, gold’s gains have been tempered by geopolitical developments, such as the cease-fire agreement between Israel and Hamas, which may affect demand for safe havens.
As the market grapples with these complexities, traders remain cautious, closely watching Trump’s moves to gauge their impact on gold’s trajectory.
Other precious metals were greatly debased. they were unchanged at $965.25 an ounce, while they were up 0.4% at $31.25 an ounce.
Copper weakened on concerns about trade tariffs
Among industrial metals, copper prices were lower as a combination of expected US tariffs, the prospect of a stronger dollar and investor caution ahead of Trump’s inauguration weighed on the red metal.
.Although increased Chinese imports and falling inventory levels have provided some support to copper prices, traders remain cautious.
During periods of escalating tariffs and trade tensions, such as mid-2018 and mid-2019, copper prices fell sharply as investors anticipated reduced demand from China, the world’s largest copper consumer.
The London Metal Exchange benchmark was 0.3% lower at $9,166.00 a tonne, while February was also down 0.3% at $4.341 a pound.
