Gold prices to hit record levels ahead of Donald Trump's Inauguration Day?

Gold prices went up as uncertainty surrounding the incoming Trump administration's policies lifted safe-haven appeal, even as a stronger-than-expected U.S. employment data reinforced expectations the Federal Reserve might not cut interest rates as aggressively this year.

Bullion prices, however, quickly rebounded and hit their highest levels since December 12, poised for a weekly gain of more than 1.7 per cent.

The dollar rallied while U.S. stock futures fell sharply after the jobs data. Markets show traders now expect the Fed to cut interest rates by just 30 basis points over the course of this year, compared with cuts worth about 45 basis points before the data.


"Gold is still acting resilient in the face of a much stronger-than-expected jobs report ... One of the factors that's been supporting gold is this uncertainty that we've seen going into the (U.S. presidential) inauguration," said David Meger, director of metals trading at High Ridge Futures, Reuters report.

As President-elect Donald Trump's January 20 inauguration approaches, investors are anxious about his vow to impose tariffs on a wide range of imports, fearing they could fuel inflation and further limit the Fed's ability to lower rates.

While bullion is prized as a safeguard against inflation, high interest rates dull its allure as a non-yielding asset.

Spot silver gained 0.9 per cent to $30.38 per ounce, platinum fell 0.2 per cent to $959.10 and palladium added 2.2 per cent to $943.93. All three metals were headed for weekly gains.

FAQs

Q1. When is Donald Trump's Inauguration Day 2025?
A1. Donald Trump's Inauguration Day 2025 is scheduled on January 20.

Q2. Who is current President of USA?
A2. Current President of USA is Joe Biden.