Gold Price Steady Amid Inflation Fears and Pre-NFP Caution
Gold continues to shine as safe-haven demand remains robust, even overshadowing the strength of the US Dollar (USD) and rising Treasury bond yields. Inflation fears, fueled by potential immigration and trade policies from President-elect Donald Trump, have further boosted gold's appeal as an inflation hedge.
Despite expectations of fewer Fed rate cuts this year and China’s economic concerns supporting the USD near weekly highs, gold finds footing. The 10-year Treasury yield at an eight-month high of 4.68% slightly caps gold’s upside.
Pre-NFP caution dominates as markets await the US jobs report. December is projected to add 160K jobs, with unemployment steady at 4.2%. A weak NFP could revive Fed rate cut hopes, weakening the USD and propelling gold higher. Conversely, strong data may bolster hawkish Fed bets, pressuring gold.
In summary, the NFP report will likely determine the next big move for gold. A disappointing jobs report could extend gold.
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