Investing.com – Gold prices were steady on Monday as traders cautiously awaited U.S. President-elect Donald Trump's inaugural address, hoping for insight on his administration's policies and potential signals on future interest rates. .
As of 07:40 ET (12:40 p.m. Japan time), the price was up 0.3% at $2,708.70 an ounce, while February expiry was down slightly at $2,748.19 an ounce.
Traders brace for volatility as Trump takes office
Gold traders are bracing for increased volatility ahead of the start of President Donald Trump's second term, with his expected policy announcements expected to influence market trends.
Precious metals have traditionally been seen as safe-haven assets, but prices have stabilized near one-month highs, supported by weak U.S. inflation data that raises expectations for further rate cuts from the U.S. Federal Reserve. .
Market sentiment is currently being shaped by the interaction between a potential U.S. policy shift and the Federal Reserve's monetary stance. Analysts suggest a strong start to Trump's term could provide further support for the dollar, while a gradual approach could weaken the dollar and impact gold prices. I am doing it.
It fell 0.3% on Monday, supporting the yellow metal.
A weaker dollar typically makes the metal cheaper for buyers using other currencies, causing the price of gold to rise.
Additionally, recent data showing easing price pressures has led investors to expect more accommodative monetary policy, which has traditionally supported gold prices.
Despite these factors, gold's rise has been constrained by geopolitical developments that could impact safe haven demand, such as the ceasefire agreement between Israel and Hamas.
As the market navigates these complexities, traders continue to closely monitor President Trump's moves to assess the impact on gold prices.
Other precious metals were mostly suppressed. fell 0.3% to $962.70 an ounce and fell 0.3% to $31.062 an ounce.
Copper prices slump due to concerns about trade tariffs
Among industrial metals, copper prices were depressed, weighed down by expected U.S. tariffs, the prospect of a stronger dollar and investor caution ahead of President Donald Trump's inauguration.
Although increased Chinese imports and lower inventory levels are providing some support for copper prices, traders remain cautious.
Copper prices plummeted during periods of heightened tariffs and trade tensions, such as mid-2018 and mid-2019, as investors anticipated lower demand from China, the world's largest consumer of copper.
The benchmark price on the London Metal Exchange fell 0.3% to $9,165.00 per tonne, and fell 0.3% in February to $4.3540 per tonne.
(Peter Nur contributed to this article.)
