Gold prices remained subdued on Thursday, January 9, as rising bond yields and a stronger US dollar weighed on the precious metal. Investors are waiting for upcoming US economic data to provide insight into the Federal Reserve’s interest rate trajectory for 2025.
Gold Holds Steady Amid Dollar and Yield Strength
As of 0038 GMT, spot gold eased 0.1% to $2,659.27 per ounce, while US gold futures rose 0.2% to $2,677.10. The US dollar strengthened on Wednesday as bond yields advanced, following a report suggesting President-elect Donald Trump may consider emergency measures to implement new tariffs.
Investors Await US Jobs Report for Fed Clues
Gold had hit a near four-week high in the previous session, supported by weaker-than-expected US private employment data, which raised hopes that the Fed could be less aggressive in easing rates this year. The ADP National Employment Report showed US private payroll growth slowed significantly to 122,000 in December, down from 146,000 in November 2024.
Investors are now focused on the US jobs report due Friday for more clues on the Fed’s policy direction.
Fed Minutes Suggest Inflation Concerns Amid Trump’s Policies
Minutes from the Fed’s last meeting indicated policymakers expect inflation to slow this year, but warned that inflationary pressures could remain sticky due to the potential impact of Trump’s protectionist policies. As Trump is set to take office on January 20, his proposed tariffs are expected to contribute to inflationary pressures, supporting gold’s role as an inflation hedge. However, high interest rates continue to reduce gold’s appeal.
Physical Gold ETFs Show Inflows Despite Decline in Holdings
Despite recent challenges, physically-backed gold exchange-traded funds (ETFs) registered their first inflow in four years, although their holdings dropped by 6.8 tonnes, according to the World Gold Council.
Other Precious Metals Dip
Meanwhile, other precious metals saw declines: spot silver shed 0.3% to $30.03 per ounce, platinum fell 0.5% to $951.34, and palladium dropped 0.5% to $924.
Conclusion
Gold remains range-bound as investors await key US economic data, including the jobs report, to gauge the Fed’s approach to interest rates in 2025. With rising yields and a stronger US dollar acting as headwinds, gold’s future direction will depend on upcoming economic signals and the potential impact of Trump’s policies.