The gold price today experienced selling pressure; however, its status as a traditional safe haven helps to contain sharp declines. At the beginning of the week, gold plummeted due to expectations surrounding U.S. President Donald Trump's speech aimed at highlighting the incoming administration's policies, which may provide additional hints on the Federal Reserve's future rate decisions.
Gold is also used as a hedge against inflation. However, a rise in interest rates reduces its attractiveness. The future of interest rates in the U.S. will depend on how aggressively the new administration adheres to Trump's commitments. The Federal Reserve may potentially hold rates steady in January, while a decrease might begin in March, according to a Reuters poll of the majority of economists.
Tim Utter, chief market analyst at KCM Trade, noted: “If we hear more of a preliminary or soft tone from President Trump regarding trade and tariff policies, it could mitigate the risk of inflation and lead to a decline in the U.S. dollar exchange rate and income levels for obligations, while gold might become one of the assets that can benefit from such a scenario.”
The futures price for gold in the U.S. decreased by 0.3% to $2740.10 per ounce. Friday began with the release of three Palestinian territories currently under arrest, 90 Palestinian detainees. The agreement on the ceasefire extended a 15-month war, significantly damaging the Gaza sector and increasing tensions in the Middle East.
The price for silver dropped by 0.6% and amounted to $30.16 per ounce, palladium remained at $947.99, while platinum fell by 0.2% to $940.84. Futures for gold in the U.S. decreased by 0.3% to $2740.10.
