Gold (XAU/USD) price traded with slight losses near $2,690 against the broadly stronger US Dollar (USD) during the early Asian session on Monday (13/1). However, safe-haven demand due to uncertainty surrounding the policies of President-elect Donald Trump's administration could help limit Gold's decline.
A stronger-than-expected US employment data on Friday reinforced expectations that the US Federal Reserve (Fed) may not cut interest rates aggressively this year. This, in turn, weighed on non-yielding assets. Traders expect the Fed to cut interest rates by only 30 basis points (bps) this year, compared to around 45 bps of cuts before the NFP report.
On the other hand, Trump's policies risk boosting the price of Gold, a traditional safe-haven asset. "Gold is still showing resilience in the face of a much stronger-than-expected jobs report ... One of the factors that is supporting gold is the uncertainty that we see leading up to the (US presidential) inauguration," said David Meger, director of metals trading at High Ridge Futures.
In addition, rising geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict may have contributed to the precious metal's decline. Israeli attacks continued in Gaza, including near Gaza City, Nuseirat and Bureij. Two attacks were also reported in the Houmin Valley in southern Lebanon, according to the Lebanese National News Agency. (AL)
Source: Fxstreet
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