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Gold Prices Steady Above $2,700 amid Growing Fed Rate Cut Speculations
Monday, 20 January 2025 15:28 WIB | GOLD |GOLDEMAS

Gold (XAU/USD) prices struggled to capitalize on their intraday uptick and flat-lined above the $2,700 mark during the first half of the European session on Monday (January 20). The risk-on environment as depicted by a generally positive tone around equity markets turned out to be a key factor that acted as a headwind for the safe-haven precious metal. Traders also seemed reluctant to place any aggressive bets and preferred to wait for US President-elect Donald Trump's inauguration speech later today.

Meanwhile, signs of easing inflation in the US fuelled speculations that the Federal Reserve will cut interest rates twice this year. This, in turn, prompted fresh selling around the US Dollar (USD), which has now reversed Friday's up-move and lent some support to the non-yielding Gold prices. Given that the US banks will be closed in observance of Martin Luther King Jr. Day, the mixed fundamental backdrop warrants some caution before placing any directional bets around XAU/USD.

Source: FXStreet

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