Bullion remained buoyant around a monthly high today, poised for their best week since mid-November, as investors await pivotal United States jobs data that will determine how much the Federal Reserve might cut interest rates by this year.
Gold edged 0.1% higher, adding to its weekly rise of >1% to hit US$2,762.64/oz, while U.S. futures rose 0.2% to US$2,696.30/oz.
Investors have their ears cocked for a key U.S. government payrolls report, where non-farm payrolls are expected to have increased by 160,000 in December, following a jump of 227,000 in November.
Gold is also being lifted by observers waiting to see if President-elect Donald Trump will stay true to his word to announce an economic emergency to free a path to imposing his plan to slap 25% tariffs on imports from countries such as China, Canada and Mexico.
"We expect gold to drop a little in case the non-farm payroll (NFP) report comes on a higher side,” Reliance Securities senior analyst Jigar Trivedi noted.
“Reports suggest that President-elect Trump may announce an economic emergency to roll out tariffs smoothly.
“All these should support the dollar and gold might just decline in the near term. Having said that, $2,650 is a good support."
Trump will return to the White House on January 20 and his proposed tariffs and protectionist policies are expected to fuel inflation - of which gold is used to hedge against.
Gold to rise in 2025
Mining investment firm State Street Global Advisors says gold could rise up as high as US$3100/oz this year, after a belter 2024 that saw it outshine other commodities.
“Although gold’s momentum stalled in November as Donald Trump’s win at the polls drove a surge in risk assets and the U.S. dollar, we think its price still has room to run in 2025,” the gold analyst said.