Gold subdued; investors await US data for cues on Fed’s policy path

GOLD prices were subdued on Thursday (Jan 9) as rising yields and a stronger US dollar weighed, while investors awaited US data for clarity on the Federal Reserve’s interest rate stance for 2025.

Spot gold eased 0.1 per cent to US$2,659.27 per ounce, as at 0038 GMT. US gold futures rose 0.2 per cent to US$2,677.10.

The US dollar rose on Wednesday as US 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 US private employment report hinted that the Fed may be less cautious about easing rates this year.

The ADP National Employment Report showed US private payrolls growth slowed sharply a month ago to 122,000 from 146,000 in November 2024.

The market now awaits US 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.

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Gold flat as US yields, dollar rise on strong data

Elsewhere, physically-backed gold exchange-traded funds (ETFs) registered their first inflow in four years, even though their holdings fell by 6.8 tonnes, the World Gold Council (WGC) said.

Spot silver shed 0.3 per cent to US$30.03 per ounce, platinum dropped 0.5 per cent to US$951.34 and palladium dipped 0.5 per cent to US$924. REUTERS