Investing.com – Gold prices edged higher in Asian markets on Monday as traders cautiously awaited US President Donald Trump's inauguration speech, awaiting insight into his administration's policies and possible signals for future interest rates.
rose 0.3% to $2,709.3 an ounce, while February expiration gained 0.1% to 2,750.01 an ounce at 01:13 ET (06:13 GMT).
Traders are facing volatility and the incoming Trump administration
Gold traders are looking for increased volatility as Trump begins his second term, with his expected policy announcements expected to influence markets.
The precious metal, traditionally seen as a safe-haven asset, saw prices settle near one-month highs, bolstered by subdued US inflation data that raised expectations of further Federal Reserve rate hikes.
Market sentiment is now being shaped by the interplay between potential changes in US policy and the Federal Reserve's monetary stance. Analysts suggest that a strong start to the Trump era could further support the dollar, while a slower path could weaken it, thereby affecting gold prices.
It was 0.3% weaker in Asian hours on Monday, lending support to the yellow metal.
A weak dollar usually drives gold prices higher because it makes the metal cheaper for buyers using other currencies.
In addition, recent data showing easing price pressures have led investors to expect more accommodative monetary policy, which traditionally supports gold prices.
Apart from these factors, the benefits of gold have been reduced by the development of the country, such as the agreement to end the war between Israel and Hamas, which can influence the need for security.
As the market moves through these complexities, traders remain vigilant, closely watching Trump's moves to test their impact on the gold trend.
Other precious metals were largely defeated. were unchanged at $965.25 an ounce, while rising 0.4% to $31.25 an ounce.
Copper eased as trade concerns weighed
Among industrial metals, copper prices have been lowered as a combination of US price expectations, the prospect of a stronger dollar, and investment caution ahead of Trump's inauguration, weighing on the red metal.
.While rising Chinese imports and falling inventory levels have provided support for copper prices, traders remain cautious.
During periods of inflation and trade pressures, such as in mid-2018 and mid-2019, copper prices fell sharply as investors anticipated a reduction in demand from China, the world's largest copper buyer.
Benchmark on the London Metal Exchange inched 0.3% lower to 9,166.00 tonnes, while February was also marked 0.3% lower to 4.341 pounds.