gold Prices⁤ Hold Steady as US Economic uncertainty Persists

Gold⁤ prices are holding relatively steady near $2,634 per ounce, ⁣as traders carefully ‌assess the⁤ potential impact of the incoming US governance’s economic policies ⁢on ‌global markets.While the president-elect has hinted at easing some previously proposed tariffs, lingering uncertainty continues to influence ‍investor sentiment.

The metal’s price has remained relatively flat following two consecutive sessions of decline. the situation is further‌ intricate by rising 10-year US Treasury bond yields, reaching their highest point since May, coupled with a weakening dollar. This creates ⁣a mixed impact on‍ gold; while⁤ higher yields typically pressure‌ gold ​prices, the ⁣weaker​ dollar offers some ⁣support.

Last year saw a remarkable 27% surge​ in gold prices, largely fueled by ⁢US monetary easing. Though, this momentum slowed following the US presidential election, as the stronger dollar dampened gold’s appeal. Now,analysts⁣ predict ‌more modest gains for gold in the coming year.

Goldman Sachs,⁣ for example, ⁤has projected a gold ⁣price of $3,000 by ⁤mid-2026, anticipating‌ a less aggressive approach to interest rate cuts by the ⁣federal Reserve. “Goldman Sachs’ target is​ for gold to reach $3,000 by mid-2026, due to expectations of a smaller rate cut from the Federal Reserve,”​ a⁤ recent report stated.

Reflecting this cautious outlook, hedge fund optimism has fallen to it’s lowest level in six months, according to data from the Commodity Futures Trading Commission. “Bets decreased,” the report noted, highlighting the reduced bullish sentiment among these major ⁢market players.

As of​ 8:23​ am Singapore time,the spot gold price dipped⁤ slightly by 0.1% ‌to $2,633.61 per ⁤ounce. The Bloomberg Dollar⁢ Index remained relatively unchanged after a 0.6%⁤ decline in the previous session. Other precious metals, including silver, palladium, and platinum, showed signs‍ of stabilization.

Market participants are⁣ now eagerly awaiting ⁢Friday’s US ​jobs report, which is expected ‌to reveal a potential moderation in the still-robust labor market. ​ This report coudl influence expectations regarding the Federal Reserve’s future monetary policy decisions.

while the upcoming jobs report is ⁣unlikely to substantially alter the prevailing view of a more cautious approach to rate ‍cuts⁢ in 2025, ‍it will undoubtedly contribute to the ongoing debate surrounding inflation. Further insight is expected this week with the release of the minutes​ from the fed’s December meeting.