Gold Prices Dip Amid Stronger Dollar, Fed Meeting in Focus

Gold prices slipped during aboriginal Asian trading hours connected Monday arsenic the dollar strengthened, with investors intimately monitoring the U.S. Federal Reserve's archetypal gathering of 2025 for guidance connected involvement complaint decisions.

Key Highlights:

• Spot Gold: Declined 0.1% to $2,768.01 per ounce arsenic of 0046 GMT.
• U.S. Gold Futures: Dropped 0.2% to $2,772.70 per ounce.
• Dollar Index: Rose 0.2%, expanding the outgo of golden for overseas buyers.

Federal Reserve Outlook:

• Fed policymakers are anticipated to support the existent involvement complaint scope of 4.25%-4.50% during the Jan. 28-29 meeting.
• Attention centers connected however the Fed volition navigate economical changes shaped by aboriginal moves from President Donald Trump, including calls for continued complaint cuts.
• Last year, the Fed reduced its benchmark complaint by a afloat percent point.

Economic Context:

• Data since the Dec. 17-18 Fed gathering suggests ostentation remains connected a dilatory but dependable way toward the 2% target, supported by debased unemployment and accordant economical growth.
• Gold's presumption arsenic an ostentation hedge whitethorn look challenges if Trump's perceived inflationary policies punctual the Fed to support rates higher for an extended period.

Geopolitical Developments:

• President Trump announced connected Sunday plans for retaliatory tariffs and sanctions against Colombia aft the state barred 2 U.S. subject craft carrying deported migrants.

Market Activity:

• SPDR Gold Trust: Holdings fell by 0.47%, from 864.19 metric tons connected Thursday to 860.17 tons connected Friday.
• COMEX Speculators: Increased nett agelong positions by 21,864 contracts, reaching 234,358 successful the week ending Jan. 21.

Other Precious Metals:

• Silver: Dropped 0.3% to $30.52 per ounce.
• Palladium: Declined 0.8% to $979.72 per ounce.
• Platinum: Fell 0.4% to $945.20 per ounce.

Upcoming Data and Events (GMT):

• 0130: China NBS Manufacturing PMI (Jan)
• 0500: Japan Leading Indicator Revised (Nov)
• 0900: Germany Ifo Business Climate, Current Conditions, and Expectations (Jan)
• 1100: France Unemployment Class-A SA (Dec)
• 1500: U.S. New Home Sales-Units (Dec)

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