Gold declines as dollar strengthens, broader outlook remains positive

13 Ocak 2025

Today market analysis on behalf of Hani Abuagla Senior Market Analyst at XTB MENA

Gold experienced a decline in today’s trading session, primarily influenced by a strengthening dollar and rising Treasury yields. This reaction largely stemmed from Friday’s robust U.S. employment data, which exceeded market expectations and underscored the ongoing strength of the American labor market and economic resilience. These developments have prompted market participants to reassess the Federal Reserve’s monetary policy trajectory, with a growing consensus suggesting a more cautious approach by the Fed this year.

Additionally, President-elect Trump’s proposed policies, particularly his pledge to impose steep tariffs on imports, could heighten inflation risks, adding complexity to the Federal Reserve’s decision-making. Market attention is now centered on the upcoming U.S. CPI inflation data, which will be pivotal in shaping expectations regarding the Fed’s policy direction.

While near-term pressures weigh on gold prices, the broader outlook could remain favorable. Gold could continue to benefit from sustained geopolitical uncertainties and steady central bank demand.

 

Zaid Barem / YMM