Gold rises on safe-haven demand amid U.S. uncertainty

Gold traded above $2,685 per ounce on Monday, supported by safe-haven demand amidst uncertainty over the policies of the incoming U.S. administration.

Gold rises on safe-haven demand amid U.S. uncertainty

With President-elect Donald Trump set to take office on January 20th, his proposed tariffs could trigger trade wars and inflation, creating a favorable environment for gold, a hedge against inflation. However, a stronger-than-expected U.S. jobs report on Friday indicated an improving labor market and a resilient economy, strengthening expectations for slower rate cuts by the Federal Reserve this year.

Gold faces pressure as investors await U.S. CPI data

This could put downward pressure on gold as higher rates diminish the appeal of non-yielding assets. Investors are now focused on the upcoming U.S. CPI inflation data for further clues about the Fed's policy stance.