Gold remains stable in European trading While traders wait for President Donald Trump to take office.
The traders’ concerns over President-elect Donald Trump taking the oath of office as the 47th President of the United States (US) later today, the price of gold (XAUUSD) is slightly up on Monday and is currently trading at about $2,700 after dropping earlier in the Asian session. Concerns over Trump’s policies, such as immigration and tariffs, which might increase the value of gold as a haven while simultaneously lifting the US dollar, are causing traders to reevaluate their gold positioning US dollar. Recent gold advances driven by increased geopolitical tensions, political unpredictability, and trade uncertainty.
US markets are closed on Monday, traders are preparing for a busy week.
According to Bloomberg, a small percentage of bond traders think the Fed will raise interest rates rather than lower them as most market players expect. According to a Bloomberg Intelligence report, traders who based on options linked to the Secured Overnight Financing Rate (SOFR) believe that there is a 25% likelihood that the Fed will raise rates by the end of the year. For gold, which normally has an inverse relationship with yields, that would be disastrous news.
Daily Market Update: hedge funds are still optimistic.
One of the biggest investors in the world, State Street Global Advisors, claims that gold prices might prolong the 2024 boom that sent the precious metal to its most annual gain in 14 years, reaching $3,100 an ounce this year, according to Financial Review.
According to Reuters, hedge fund managers increased their net long calls for gold and silver to a five-week high in the Commodity Futures Trading Commission’s (CFTC) recent Commitment of Traders (COT) report.
According to Reuters, a ceasefire in the Gaza region of the Middle East has started to take root after Hamas freed three female captives in return for 90 Palestinians detained in Israeli jails.
