Gold pricing attracts some haven flows amid worries over Trump’s tariff intentions.

As the European session begins on Tuesday, the price of gold (XAUUSD) continues its steady intraday rise and, in the last hour, reaches a new daily high in the $2,646-2,647 range. Expectations that US President-elect Donald Trump’s policies could rekindle inflation provide support for the commodity, which regarded as a hedge against rising costs. Moreover, persisting geopolitical uncertainties arising from the protracted Russia-Ukraine war and tensions in the Middle East continue to operate as a tailwind for The precious metal that is safe.

The XAUSD exchange rate may be capped by the Fed’s aggressive stance and high US bond yields.

The recent decline in the value of the US dollar (USD) from a two-year high also helps the price of gold. However, gains for the non-yielding bullion may be limited by the Federal Reserve’s (Fed) hawkish hint that it will delay the pace of rate cuts in 2025, which continues to underpin rising US Treasury bond yields. Ahead of this week’s FOMC minutes and US Nonfarm Payrolls (NFP) data releases on Wednesday and Friday, respectively, traders may also want to avoid making aggressive directional bets.

Daily Market Update:Gold draws haven flows amid worries about Trump’s tariff proposals and geopolitical uncertainties.

It anticipated that US President-elect Donald Trump’s proposed protectionist policies and taxes will increase prices and cause global commerce, providing backing for the price of gold, a safe haven.

On Sunday, the Ukrainian military began a fresh onslaught in the western Russian region of Kursk. Ukraine lost up to 340 soldiers in the Kursk region, according to Russia’s Defense Ministry.

The Israeli military said on Sunday that it has been carrying out operational strikes in Syria in the midst of allegations of cease-fire violations, as Israel maintains its unrelenting bombardment of Gaza.

With most officials worried that inflation would flare up again, the Federal Reserve’s December predictions suggested a change to a more conservative pace of rate decreases in 2025.

Despite notable progress in reducing pricing pressures over the previous two years, San Francisco Fed President Mary Daly stated on Saturday that inflation is still uncomfortably higher than 2%.target.

Fed Governor Lisa Cook stated on Monday that given the job market’s strength and the inflation rate’s continued stickiness.

In addition, Fed Governor Lisa Cook stated on Monday that given the job market’s strength and the inflation rate’s continued stickiness, policymakers should exercise greater caution when reducing interest rates.

In order to help the US dollar draw some dip-buying on Tuesday and cap the XAU/USD exchange rate, the yield on the benchmark 10-year US government bond increased to a level over eight months on Monday.

The FOMC meeting minutes and the highly anticipated US Nonfarm Payrolls (NFP) report, which released on Wednesday and Friday, respectively, continue to dominate market attention this week.

Later in the North American session, the US economic docket on Tuesday, which includes the JOLTS Job Openings data and the ISM Services PMI, may offer some encouragement.