Gold subdued; investors await US data for cues on Fed's policy path
Thu Jan 09 2025
Gold prices were subdued on Thursday as rising yields and a stronger U.S. dollar weighed, while investors awaited U.S. data for clarity on the Federal Reserve's interest rate stance for 2025.
FUNDAMENTALS
* Spot gold eased 0.1% to $2,659.27 per ounce, as of 0038 GMT. U.S. gold futures rose 0.2% to $2,677.10.
* The dollar rose on Wednesday as U.S. bond yields continued their advance following a report that President-elect Donald Trump was contemplating the use of emergency measures to allow for a new tariff programme.
* The bullion hit a near four-week high in the last session after a weaker-than-expected U.S. private employment report hinted that the Fed may be less cautious about easing rates this year.
* The ADP National Employment Report showed U.S. private payrolls growth slowed sharply a month ago to 122,000 from 146,000 in November 2024.
* The market now awaits U.S. jobs report on Friday for more cues on the Fed's policy path.
* Minutes of Fed's last meeting showed policymakers agreeing that inflation was likely to continue slowing this year. They also saw a rising risk of price pressures remaining sticky, grappling with the potential effect of Trump's policies.
* Trump will take office on Jan. 20 and his proposed tariffs and protectionist policies are expected to fuel inflation.
* Bullion is considered an inflationary hedge, but high rates reduce the non-yielding asset's allure.
* Elsewhere, physically-backed gold exchange-traded funds (ETFs) registered their first inflow in four years, even though their holdings fell by 6.8 metric tons, the World Gold Council (WGC) said.
* Spot silver shed 0.3% to $30.03 per ounce, platinum dropped 0.5% to $951.34 and palladium dipped 0.5% to $924.