Gold prices decline as markets await US interest decisions

Gold prices recorded a slight decline today, Monday, as investors await the release of US economic data this week, as they seek indications about the Federal Reserve’s approach to interest rates.

According to market data:

• Spot gold prices fell By 0.16% to record $2634.69 per ounce.
• Gold futures fell By 0.32% to reach $2646.10 per ounce.

Performance of other precious metals:

• Silver rose in spot transactions by 0.1% to reach… $29.64 per ounce.
• Platinum fell by 0.7% to $931.70 per ounce.
• Palladium fell 0.4% to record $918.63 per ounce.

Global markets are awaiting these data to determine the extent of their impact on future interest decisions, especially with expectations that the Federal Reserve may continue its tight policy to curb inflation.

Markets focus on jobs report and US Federal Reserve policies

This week, markets’ attention is focused on the US jobs report expected to be released on Friday, as this report is expected to provide new evidence about the Federal Reserve’s monetary policy directions. This comes after the Fed sparked market turmoil last month by reducing its expectations for cutting interest rates in 2025.

What the markets are waiting for:

• ADP report on jobs and employment data.
• Minutes of the Federal Reserve’s latest meeting, which will highlight discussions on monetary policy.

The relationship between gold prices and interest rates

It should be noted that gold tends to rise as interest rates fall, as the opportunity cost of holding it decreases. Gold is also considered a safe haven during periods of political and economic uncertainty and high inflation rates.

The impact of Trump’s prospective policies

The president-elect’s policies are expected to make a comeback Donald Trumpwhich focuses on trade protection and imposing customs tariffs, to the fore. These policies could lead to higher inflation, prompting the Federal Reserve to hold off on lowering interest rates. This scenario may limit gold’s gains in the short term, although it could enhance its appeal as a hedge against inflation later on.

Currently circulating prices… real-time update