Gold Futures Surge Amid Uncertainty Over Trump’s Policies
New York gold futures closed higher on Friday,January 10,as investors sought refuge in the precious metal amid growing uncertainty surrounding Donald Trump’s government policies. The February COMEX gold contract rose by $24.20, or 0.90%, to settle at $2,715.00 per ounce, marking its highest level as December 12.
The rally came despite stronger-than-expected U.S. employment data, which reinforced expectations that the Federal Reserve (Fed) may delay interest rate cuts this year. The U.S. Department of Labour reported a notable increase of 256,000 jobs in December, surpassing economists’ forecasts of 160,000. The unemployment rate also dipped to 4.1%, below the anticipated 4.2%.
Initially, gold prices dipped to $2,663.09 an ounce following the jobs report. However, they quickly rebounded, driven by concerns over Trump’s impending inauguration on January 20. Investors are notably wary of his pledge to impose tariffs on a range of imported goods, which could stoke inflation and limit the Fed’s ability to lower interest rates.
David Meagher, director of gold trading at High Ridge Futures, noted, “Gold continues to rally. Even though the employment report came out stronger than expected, one of the factors supporting gold is the uncertainty we saw before Donald Trump took office as president of the United States.”
Gold’s appeal as a safe-haven asset has been bolstered by thes uncertainties. However, high interest rates could dampen its attractiveness, as gold does not yield interest like other investments.
Key Highlights:
| Metric | Details |
|————————–|—————————————————————————–|
| Gold Price (Feb. COMEX) | $2,715.00/ounce (+0.90%) |
| Weekly Gain | +1.7% |
| december Jobs Added | 256,000 (vs. 160,000 expected) |
| Unemployment Rate | 4.1% (vs.4.2% forecast) |
| Trump Inauguration | January 20, 2025 |
As Trump’s policies loom, gold remains a focal point for investors navigating a landscape of economic uncertainty. For more insights, read the full report here.
