Gold edged higher on dollar weakness as traders weighed risks to global trade after President-elect Donald Trump denied a report he might moderate plans for across-the-board tariffs.
Bullion traded near $2,640 an ounce, after ending lower in the previous two sessions. The uncertainty about the hotly anticipated US moves helped lift 10-year Treasury yields to the highest level since May on Monday, while the dollar fell. The precious metal typically faces a headwind from higher yields, but support from a weaker US currency.
“Gold is seen consolidating in a range, but is likely to trade with a positive bias on safe-haven buying,” Pranav Mer, an analyst at JM Financial Services Ltd. in Mumbai, said in a note.
Bullion surged 27% last year in a record-breaking run that was propelled in part by US monetary easing, though the rally lost momentum after Trump’s US election victory buoyed the dollar. Bulls are now facing the prospect of less impressive gains this year, with Goldman Sachs Group Inc. pushing back a target for gold hitting $3,000 to mid-2026 on expectations for fewer Federal Reserve cuts.
Against that backdrop, hedge funds’ bullish wagers fell to the lowest in six months, Commodity Futures Trading Commission data showed.
Spot gold rose 0.3% to $2,644.29 an ounce at 8:17 a.m. in London.
The US jobs report, due Friday, is expected to show a moderating yet still-healthy labor market. The data are unlikely to alter the view that the Fed will take a more cautious approach to cutting rates in 2025 amid renewed concerns about inflation. Minutes of the Fed’s December meeting are also due this week.
