Gold prices continued to rise on January 14 due to weaker-than-expected U.S. inflation data, which increased investor confidence in potential interest rate cuts this year and weakened the dollar. Spot gold rose 0.3%, while U.S. gold futures gained 0.1%.

Investors are now awaiting the Consumer Price Index (CPI) data on January 17 for further insights into the Fed's policy direction.

Gold Prices Surge Amid Weaker U.S. Inflation Data and Heightened Expectations of Continued Rate Cuts

Gold prices dropped by 1% on January 13, 2025, following stronger-than-expected U.S. nonfarm payroll data. This data led to increased market confidence that the Federal Reserve would be more cautious about cutting interest rates this year, which boosted the U.S. dollar to a two-year high. As a result, gold became more expensive for non-U.S. dollar buyers. Investors are now awaiting upcoming U.S. inflation data and other economic indicators to gauge the Fed's future policy. High interest rates typically reduce the appeal of gold, as it doesn’t yield any income.

Strong U.S. Jobs Data Boosts Dollar, Gold Drops 1%

Gold prices are facing pressure today due to a stronger US dollar and expectations of slower US Federal Reserve rate cuts. Anuj Gupta from HDFC Securities attributes the dip in gold prices to these factors but maintains a positive outlook for gold in the long term, suggesting that any significant dips should be seen as buying opportunities.

Gold Prices Under Pressure Due to Strong US Dollar and Slower Fed Rate Cuts

Gold prices saw an uptick in the domestic futures market during the morning session on Friday, January 10, buoyed by positive global market trends. However, the gains were limited as rising US bond yields and a stronger US dollar put pressure on the precious metal. 

Internationally, gold prices remained close to a four-week peak, with reports from Reuters suggesting that the metal was on track for its best week since mid-November. Despite this, the near eight-month high in US treasury yields continues to pose a significant risk to gold’s price movement.

Attention is now turning to the upcoming US jobs report, set to be released later today, as it is expected to influence future expectations regarding the Federal Reserve's interest rate decisions.

Gold Prices Rise on Positive Global Trends, But US Bond Yields Limit Gains

In December, the U.S. non-farm payroll report showed weaker-than-expected private employment, leading some to believe the Federal Reserve may not be as cautious about rate cuts this year. This helped push gold prices to a four-week high. 

Traders are focused on the upcoming U.S. non-farm payroll data and President Trump's inauguration. The Fed anticipates inflation to ease, but the impact of Trump's policies could affect gold prices, as high interest rates reduce gold's investment appeal.

Gold Prices Surge as Weaker-than-Expected U.S. Jobs Report Raises Rate Cut Expectations

On January 8, 2025, gold prices rose initially but later retreated due to stronger U.S. job market data, which reduced expectations for significant Federal Reserve rate cuts. Spot gold rose 0.5%, reaching $2648.76 per ounce, while U.S. gold futures gained 0.7%. Despite a slowdown in hiring, U.S. job vacancies increased unexpectedly in November, signaling a strong economy. This stability in the job market and the persistent inflation threat might lead the Fed to slow its rate cuts. Meanwhile, China's central bank continued to increase its gold reserves, supporting gold prices.

Gold Prices Retreat as Strong U.S. Job Market Damps Rate Cut Expectations

Gold prices fell on January 6 as U.S. Treasury yields rose, reducing gold's appeal. The Federal Reserve hinted at slower rate cuts in 2025, causing investors to focus on upcoming economic data for further insights into the Fed's outlook. Spot gold dropped by 0.2%, while U.S. gold futures declined by 0.3%.

WisdomTree's Nitesh Shah noted that rising bond yields pressured gold, with the 10-year U.S. Treasury yield hitting an 8-month high. Shah also forecasted that gold could reach $3,050 per ounce by year-end if inflation remains high and if Middle East tensions escalate.

Gold Prices Fall as U.S. Treasury Yields Rise and Investors Eye Economic Data

U.S. President-elect Donald Trump's protectionist policies are expected to drive inflation, which could slow down the Fed's rate cuts, limiting gold's upside potential. Despite recent rate cuts, the Fed is only projected to reduce rates by two times in 2025 due to ongoing inflation. Gold tends to perform well in low-interest-rate environments and as a hedge against geopolitical uncertainty and inflation.

Gold Prices Hold Steady as Investors Await Key U.S. Jobs Data and Fed Outlook

On Monday (Dec 30), gold prices fell due to light holiday trading, with investors awaiting upcoming U.S. economic data and policy shifts under the incoming Trump administration. Spot gold dropped 0.6% to $2604.49, and U.S. gold futures fell 0.5% to $2618.10. 

Gold's appeal has risen by nearly 27% this year, driven by geopolitical uncertainties and U.S. rate cuts. As Trump takes office in January, markets expect major policy changes, including new tariffs and tax reforms. Next week, key U.S. economic data will be released to assess the economy’s health.

Gold Prices Dip Amid Light Holiday Trading and Awaited U.S. Economic Data

On Monday, December 30, gold prices increased in the domestic futures market, fueled by rising tensions in the Middle East, while a steady dollar and US bond yields also influenced market sentiment.

Gold Prices Rise on December 30 Amid Middle East Tensions and Stable Dollar

Daniel Pavilonis of RJO Futures linked the rise to geopolitical tensions, particularly Russia's attacks on Ukraine's power grid. President Biden condemned the attacks and called for continued U.S. support for Ukraine. Pavilonis expects central banks to keep buying gold, and forecasts gold prices may surpass $3,000 per ounce next year.

Gold Prices Rise Amid Geopolitical Tensions and Market Awaiting U.S. Economic Signals for 2025

Gold prices stabilized on December 24 amid quiet holiday trading, with investors awaiting the Federal Reserve's interest rate plans and President-elect Trump's tariff policies, which could impact gold prices in 2025. 

Gold had a strong 2024, up 27%, with expectations for similar performance in 2025, driven by geopolitical risks and trade concerns. However, with the strengthening U.S. dollar under Trump, gold's momentum slowed in November. Analysts anticipate that higher tariffs and regulatory changes could affect inflation and the Fed’s rate cuts, potentially reducing gold's appeal due to the higher opportunity cost of holding it.

Johnny Lee

Johnny Lee

Jan 15 2025

Gold Prices Surge Amid Weaker U.S. Inflation Data and Heightened Expectations of Continued Rate Cuts

Johnny Lee

Jan 14 2025

Strong U.S. Jobs Data Boosts Dollar, Gold Drops 1%

Johnny Lee

Jan 13 2025

Gold Prices Under Pressure Due to Strong US Dollar and Slower Fed Rate Cuts

Johnny Lee

Jan 10 2025

Gold Prices Rise on Positive Global Trends, But US Bond Yields Limit Gains

Johnny Lee

Jan 09 2025

Gold Prices Surge as Weaker-than-Expected U.S. Jobs Report Raises Rate Cut Expectations

Johnny Lee

Jan 08 2025

Gold Prices Retreat as Strong U.S. Job Market Damps Rate Cut Expectations

Johnny Lee

Jan 07 2025

Gold Prices Fall as U.S. Treasury Yields Rise and Investors Eye Economic Data

Johnny Lee

Jan 06 2025

Gold Prices Hold Steady as Investors Await Key U.S. Jobs Data and Fed Outlook

Johnny Lee

Dec 31 2024

Gold Prices Dip Amid Light Holiday Trading and Awaited U.S. Economic Data

Johnny Lee

Dec 30 2024

Gold Prices Rise on December 30 Amid Middle East Tensions and Stable Dollar

Johnny Lee

Dec 27 2024

Gold Prices Rise Amid Geopolitical Tensions and Market Awaiting U.S. Economic Signals for 2025

Johnny Lee

Dec 26 2024

Gold Prices Stabilize as Investors Eye Fed's Strategy and Trump's Tariff Policies for 2025 Outlook