Gold Prices Remain Flat Amid Strong Dollar and Improved Risk Appetite

Gold prices showed limited movement in Asian trading on Thursday, as improved risk appetite and a strong U.S. dollar weighed on safe-haven demand despite political turbulence in France and South Korea.

Market Performance

• Spot Gold: Fell slightly to $2,649.09 an ounce.
• Gold Futures (February): Declined 0.1% to $2,672.99 an ounce by 23:14 ET (04:14 GMT).

Wall Street’s rally to record highs, driven by strength in technology shares, further eroded demand for the yellow metal.

Safe Haven Demand Dwindles Amid Political Turmoil
Political unrest in France and South Korea, typically supportive of haven assets like gold, failed to lift demand:

• France: The government faced collapse.
• South Korea: Calls for President Yoon Suk-Yeol’s impeachment intensified after his failed martial law attempt.

However, these events had limited impact as global markets largely advanced, overshadowing localized volatility.

Other Precious and Industrial Metals

• Platinum: Rose 0.1% to $949.60 an ounce.
• Silver: Dropped 0.5% to $31.767 an ounce.
• Copper: Benchmark futures fell 0.2% to $9,086.50 a ton, while February futures edged down 0.1% to $4.1943 a pound.

Dollar Strength and Fed Comments
The U.S. dollar maintained strength, supported by:

• Trump’s Tariff Threats: The President-elect proposed imposing tariffs on several nations.
• Fed Chair Powell’s Remarks: Powell praised the U.S. economy’s resilience, signaling a more cautious approach to interest rate cuts moving forward.

While Powell reiterated the likelihood of a December rate cut, he tempered expectations for aggressive easing in 2025. Concerns over potential long-term inflation due to expansionary policies under Trump added further uncertainty.

Impact on Non-Yielding Assets
Higher-for-longer interest rates continued to weigh on non-yielding assets like gold and other metals.

Key Data Ahead
Investors are awaiting the nonfarm payrolls data on Friday, a critical indicator likely to shape expectations for the Fed’s future monetary policy.