Lagos — Gold continued its positive momentum, marking its third consecutive session of gains, driven by safe-haven demand. Markets are carefully analyzing the potential economic and inflationary impacts of the US President-elect Donald Trump’s proposed policies as he prepares to take office on January 20th.
Of particular concern are Trump’s proposed tariffs, which could potentially trigger trade tensions and increased inflation. The heightened uncertainty could push gold prices to the upside.
However, the recent Federal Open Market Committee (FOMC) minutes revealed that policymakers remain watchful of persistent price pressures, particularly in light of Trump’s anticipated policies. In this regard, a more hawkish monetary policy could weigh on gold.
Meanwhile, central banks purchases remain a positive force for the market with a robust demand as seen with the Chinese central bank this week, indicating a broader interest in gold as a strategic asset.
Market participants are now turning their attention to the upcoming US nonfarm payrolls report, which could provide crucial insights into the Federal Reserve’s future interest rate decisions and potentially introduce additional volatility to gold prices. At the same time, a strong dollar and higher treasury yields could cap gains.
*George Pavel General Manager at Naga.com Middle East
