Gold prices remained stable on Monday, January 13, as investors navigated a mix of conflicting factors. Uncertainty surrounding the incoming Trump administration’s trade policies boosted demand for the precious metal as a safe-haven asset, while a stronger-than-expected US jobs report reinforced the Federal Reserve’s cautious stance on future rate cuts.
Spot gold was trading at $2,690.49 per ounce at 0028 GMT, maintaining its position near the high reached on Friday, December 12. Meanwhile, US gold futures rose 0.2% to $2,720.20.
The recent US jobs report, which showed a surge of 256,000 new jobs in December—the highest monthly increase since March 2024—supported the Fed’s wait-and-see approach on interest rates. The report also highlighted growing concerns that President-elect Donald Trump’s promises to impose tariffs on imports could trigger inflation.
In response to the data, US rate futures now fully expect the Federal Reserve to hold rates steady at its January meeting. According to LSEG estimates, markets are pricing in just one rate cut for the year, likely in June. Higher interest rates typically reduce the appeal of non-yielding assets like gold, though bullion is still seen as a hedge against inflation.
Market participants are eagerly awaiting the release of the Consumer Price Index later this week. In addition, several Fed officials, including John Williams, are scheduled to speak, which could provide further insights into the central bank’s policy outlook.
On the investment front, the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.66% increase in its holdings, rising to 876.82 tonnes as of Friday from 871.08 tonnes on Wednesday.
In India, gold discounts widened last week as consumers refrained from buying amid rising local prices. However, the upcoming Chinese New Year sparked increased gold demand in other major Asian markets.
Meanwhile, silver prices remained unchanged at $30.38 per ounce. Platinum saw a 0.2% dip, settling at $962.73, while palladium gained 0.1%, reaching $949.12.
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