Gold prices were little changed in the trading session on January 29, ahead of the Fed's interest rate decision, expected to be released after the meeting on January 29 (local time).
In addition, investors cautiously monitoring President Donald Trump's trade policy, especially new tariff measures, also caused the gold market to "sit still".
This afternoon, at the Bengaluru market (India), the spot gold price was stable at 2,761.93 USD/ounce, while the US gold futures price increased slightly by 0.1% to 2,769.80 USD/ounce.
Gold prices traded near record highs last week but fell more than 1% on Monday as investors sold to offset losses from a slump in technology stocks following the emergence of a low-cost, energy-efficient artificial intelligence (AI) model from China’s DeepSeek.
“The failure of gold to surpass its previous high is a worrying sign, but the uptrend is not broken,” said Kyle Rodda, a financial markets analyst at Capital.com, a commodities and currencies trading platform. “Gold is being supported by hedging demand related to budget deficits, public debt and the trend of de-dollarization.”
Meanwhile, the White House confirmed that President Trump still plans to impose import tariffs on goods from Canada and Mexico on February 3.
The Fed’s first policy meeting of 2025 ends late on January 29 (local time). The bank is expected to keep interest rates unchanged after cutting them by 1 percentage point from September to December 2024. Investors are also waiting for the Fed’s response to pressure from Mr. Trump to lower interest rates. However, Mr. Trump’s policies could lead to higher inflation, forcing the Fed to keep interest rates higher for longer.
Gold is often seen as a safe haven asset during times of uncertainty and trade tensions. However, higher interest rates can reduce the appeal of the precious metal because it does not offer a yield.
On the same day, spot silver price was flat at $30.39/ounce, platinum price increased 0.3% to $944.30/ounce. Meanwhile, palladium price decreased 0.5% to $952.25/ounce.
In Vietnam, the gold market is closed for Lunar New Year.
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