Gold steady as market awaits more US data

Gold prices held its ground on Tuesday, with investors awaiting more economic data later this week for cues on the Federal Reserve's interest rate trajectory for this year.

FUNDAMENTALS

* Spot gold was steady at $2,636.05 per ounce, as of 0106 GMT. U.S. gold futures remained unchanged at $2,647.30.


* Investors are now looking to the U.S. jobs report on Friday, which could help shed more light on the Fed's policy path.

* They are also awaiting the job openings data later on the day, ADP employment numbers and the minutes from the Fed's December meeting on Wednesday.

* The benchmark 10-year Treasury yield hit the highest since May 2024 on Monday and the U.S. dollar was lower after conflicting reports about how aggressive President-elect Donald Trump's tariff plans could be when he takes office.

* Trump on Monday denied a newspaper report that said his aides were exploring tariff plans that would only cover critical imports, deepening uncertainty among business leaders about future U.S. trade policies.

* Several leading economists have coalesced around the view that Trump's plans to broaden tariffs, cut taxes and curb immigration may not prove as inflationary as analysis had suggested earlier. However, any effort by Trump to exert control over the Fed would pose a real risk of re-igniting price pressures, they said.

* The Fed can be cautious about any further rate cuts given a solid economy and inflation proving stickier than previously expected, Fed Governor Lisa Cook said.

* Higher interest rates dampen the non-yielding bullion's appeal.

* COMEX gold speculators cut net long positions by 1,876 contracts to 182,384 in the week to Dec. 31, 2024, data showed.

* Spot silver was flat at $29.94 per ounce, platinum rose 0.1% at $933.90 and palladium added 0.1% to $921.82.