Gold price forecast fell to $2,695 in the early Asian session on Monday, marking a continuation of its recent decline. The robust strength of the US Dollar (USD), particularly ahead of President-elect Donald Trump’s inauguration, has exerted selling pressure on the precious metal.
Key Factors Impacting Gold Prices
Anticipated Volatility Before Trump Inauguration Impact
Market analysts anticipate significant price fluctuations in gold price forecast as traders focus on President Trump’s trade policy developments. Any aggressive rhetoric from Trump regarding trade tariffs aimed at bolstering the US manufacturing sector could strengthen the Greenback. Such a scenario would likely weigh on gold, as it is priced in USD.
US Inflation Data and Federal Reserve Speculations
The weaker-than-expected US inflation figures released last week have created room for speculation. This data could prompt expectations of more than one interest rate cut by the Federal Reserve (Fed), potentially lending support to gold price forecast. Investors are keenly observing Trump’s inauguration for insights into forthcoming executive orders and fiscal policies.
Geopolitical Concerns Boost Safe-Haven Demand
Ongoing geopolitical tensions remain a driving force for gold price forecast safe-haven appeal. Persistent conflicts in the Middle East and between Russia and Ukraine continue to elevate investor caution. According to The Guardian, Russian forces recently seized additional settlements in Ukraine’s Donetsk region, underscoring the escalating conflict.
Outlook for Gold Prices
The uncertainty surrounding President Trump’s impending policies has provided underlying support for gold. David Meger, director of metals trading at High Ridge Futures, noted, “The uncertainty in regard to the policies that President Trump is going to put in place has been one of the supportive factors for gold.” Traders will closely monitor developments to gauge the metal’s short-term trajectory.
Daily Gold Signal – Explore expert insights and trading tips. Daily Gold Update – Stay informed with regular updates on gold market trends.
