Gold stabilizes amid uncertainty over Trump’s policies
Update prices
Gold settled in spot transactions at $2,690.49 per ounce by 0028 GMT, hovering near its highest level since October 12, which it recorded on Friday.
US gold futures rose 0.2 percent to $2,720.20.
The strong jobs report helped support the Federal Reserve’s conservative stance towards further cutting interest rates this year amid increasing concerns that Trump’s pledges to impose or significantly increase import tariffs will stoke inflation.
The Labor Department’s Bureau of Labor Statistics said nonfarm payrolls increased by 256,000 jobs last month, the most since March.
Investors will closely monitor the release of the monthly consumer price index later in the week.
“Gold remains resilient in the face of a much stronger than expected jobs report,” said David Major, director of metals trading at High Ridge Futures. “One of the factors supporting gold is the uncertainty we are witnessing before the inauguration” of the US President.
Gold is usually seen as a hedge against inflation, but high interest rates reduce the attractiveness of holding the yellow metal, which does not generate returns.
As for other precious metals, the price of silver stabilized in spot transactions at $30.38 per ounce, platinum fell 0.2 percent to $962.73, and palladium increased 0.1 percent to $949.12, according to Reuters data.
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