On Monday, the price of gold remained below $2,665 per ounce as investors waited for upcoming economic updates from the U.S. These updates include job data, the record of the Federal Reserve’s last meeting in December, and the monthly employment figures.
Trump’s Plans Could Hike Inflation Risks
Recent comments from Federal Reserve officials Mary Daly and Adriana Kugler suggest that the Fed might be cautious about reducing interest rates this year. Furthermore, President-elect Donald Trump’s economic strategies could lead to higher inflation, which might restrict the Fed’s ability to lower rates.
Even though these factors might make gold less attractive as it does not earn interest, its price is still supported by ongoing global political issues and the expected continuation of purchases by central banks.