Gold, Like All Other Markets, Awaits Trump Inauguration

Gold prices have steadily risen this week despite some pressure from the U.S. dollar. Spot gold eased by 0.4% to $2,701.03 per ounce, while U.S. gold futures dipped slightly by 0.1% to $2,748.70. However, both remain on course for a third consecutive weekly gain. 

The yellow metal hit a one-month high earlier in the week, only $65.6 short of its all-time high of $2,790.15 in October. The 0.8% weekly gain follows softer-than-expected U.S. core inflation data, which has fueledspeculation about further Federal Reserve interest rate cuts. 

Traders are now pricing in two rate cuts by the end of the year, driven by Fed Governor Christopher Waller’s comments that additional cuts could be possible if economic data weakens.

As investors prepare for President Donald Trump's inauguration on January 20, they are also considering the potential impact of his trade policies. These policies could ignite inflation and further escalate trade tensions, making gold more appealing as a safe haven. 

What Does This Mean for Me?

The uncertainty surrounding the Trump administration’s stance on tariffs and trade has already provided a supportive environment for gold. Many investors seek the metal as a hedge against political and economic risks. Non-yielding gold typically benefits from lower interest rates, and as the Fed contemplates further cuts, the demand for gold is likely to increase. 

Other mineral markets were on tenterhooks before the inauguration. Silver saw a slight decline, dropping 2% to $30.17 per ounce, while palladium and platinum rose by 1% and 0.9%, respectively, ending at $949.99 and $940.28 per ounce.