Gold Steadies Near One-Month High Amid Rate Uncertainty and Trump Policies

Gold prices hovered near a one-month high during Asian trading hours on Friday, driven by investor uncertainty over U.S. interest rate policy and the incoming administration of President Donald Trump. Meanwhile, industrial metals like copper gained ground, buoyed by robust economic data from China.

Gold Gains on Dollar Weakness and Haven Demand

Spot gold prices steadied at $2,715.04 an ounce by 00:00 ET (05:00 GMT), while gold futures dipped slightly by 0.2% to $2,745.26 an ounce. Both remained close to their highest levels since mid-December, benefiting from a softer dollar, which is set to end a six-week winning streak due to weaker inflation data.

Gold’s haven appeal was further supported by market jitters over the Federal Reserve’s monetary policy trajectory. While December’s inflation figures were softer, they remained elevated, leaving investors uncertain about the pace of future rate cuts. Recent U.S. retail sales and jobless claims also highlighted economic resilience, reducing the urgency for rate adjustments.

Concerns over the potential inflationary impact of Trump’s proposed trade tariffs added to the metal’s appeal. Trump, set to take office on Monday, has promised steep tariffs on key trading partners, which could stoke long-term inflation.

However, geopolitical risks eased slightly after a U.S.-brokered ceasefire between Israel and Hamas, curbing some of gold’s upward momentum.

Mixed Performance in Precious Metals

Other precious metals saw mixed activity. Platinum futures rose modestly by 0.3% to $943.85 an ounce, while silver futures declined by 0.5% to $31.555 an ounce.

Copper Rises on Positive Chinese GDP Data

Industrial metals showed strength, with copper leading gains on upbeat economic data from China. Benchmark copper futures on the London Metal Exchange climbed 0.2% to $9,268.50 a ton, while March copper futures rose 0.6% to $4.4607 a pound.

China, the world’s largest consumer of copper, reported better-than-expected GDP growth of 5.4% for the fourth quarter, bringing its annual growth rate to 5% in 2024—aligning with Beijing’s targets. The expansion was largely driven by aggressive stimulus measures, with further support expected to counteract U.S. trade headwinds.

Adding to copper’s rally, Chinese imports of the metal surged to a 13-month high in December, reflecting stronger domestic demand. Over the past two weeks, copper prices have recorded significant gains on hopes of sustained economic recovery in China.

Outlook

As markets navigate a complex mix of economic data, policy expectations, and geopolitical developments, gold and industrial metals are likely to remain sensitive to U.S. interest rate signals and Chinese demand trends. Investors will closely watch Trump’s policy announcements next week for further direction.