The price of gold fell on Monday, under pressure from a firmer American dollar, while investors focus on the first meeting of the 2025 federal reserve to obtain more indications on the trajectory of the rates of American interest.
The cash in cash dropped by 0.6% to $ 2,755.79 per ounce, at 0304 GMT, after negotiating just below the record levels on Friday. US Gold term contracts fell 0.6 % to $ 2,761.20.
The dollar increased by 0.3% after US President Donald Trump said he would impose radical measures on Colombia, including customs duties and sanctions. A stronger dollar makes gold more expensive for holders of other currencies. [USD/]
“The US dollar could be the principal responsible for the weakness of gold […] However, the current movement seems to suggest that the drop in yellow metal is still limited, potentially helped by refuge flows around trade tensions between the United States and Colombia, “said Yeap Jun Rong, market strategist at IG.
“We can still expect an increase in gold prices, because uncertainties linked to commercial measures are likely to dominate feelings.”
Gold is considered to be protection against geopolitical disorders and inflation. It also tends to prosper in an environment of low interest rates, since it does not earn any interest.
-Investors also focus on the Fed meeting on January 28 and 29. Fed political decision -makers should maintain stable rates, but the most important history will be the way the central bank will face the first measures taken by Trump.
The data collected since the last Fed meeting in December did not alter the opinion of Fed officials that inflation will continue to progress regularly, although slowly, around 2 %, with a low unemployment rate and The continuation of hiring and economic growth.
Meanwhile, speculators on the gold of the Comex increased their long clear position by 21,864 contracts to reach 234,358 contracts during the week of January 21, according to Friday data.
Among the other metals, cash drops in $ 1.1% to $ 30.26 an ounce, the palladium plunged from 2.1% to 967 dollars and the platinum dropped by 0.6% to 942 , 90.
