Gold prices showed little movement during trading on January 29th, ahead of the Fed's interest rate decision, expected after its meeting on January 29th (local time).
Furthermore, investors' cautious monitoring of President Donald Trump's trade policies, particularly new tariff measures, has also kept the gold market inactive.
This afternoon, in the Bengaluru market (India), the spot gold price remained stable at $2,761.93 per ounce, while US gold futures rose slightly by 0.1% to $2,769.80 per ounce.
Last week, gold prices traded near record highs but fell more than 1% on Monday (January 27th), as investors ramped up selling to offset losses from plummeting technology stocks following the emergence of DeepSeek's inexpensive, energy-efficient artificial intelligence (AI) model from China.
Kyle Rodda, a financial market analyst at commodity and currency trading platform Capital.com, commented: "The inability of gold prices to surpass their previous peak is a worrying sign, but the uptrend remains intact. Gold prices are being supported by safe-haven demand related to budget deficits, public debt, and the trend toward de-dollarization."
Meanwhile, the White House confirmed that President Trump still plans to impose import tariffs on goods from Canada and Mexico on February 3rd.
The Fed's first policy meeting of 2025 will conclude at the end of the day on January 29 (local time). The central bank is expected to keep interest rates unchanged after cutting them by one percentage point between September and December 2024. Investors are also awaiting the Fed's response to pressure from President Trump to lower interest rates. However, Trump's policies could lead to increased inflation, forcing the Fed to maintain high interest rates for a longer period.
Gold is often considered a safe-haven asset during times of uncertainty and trade tensions. However, high interest rates can diminish the appeal of this precious metal because gold does not yield returns.
On the same day, spot silver prices remained unchanged at $30.39 per ounce, platinum prices rose 0.3% to $944.30 per ounce, while palladium prices fell 0.5% to $952.25 per ounce.
In Vietnam, the gold market is closed for the Lunar New Year holiday.
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