Gold price rises slightly

I was not the only one to find myself in low temperatures last weekend during my first ultra-run of the year: gold prices faced icy headwinds in the form of high yields and a firm US dollar exchange rate until yesterday afternoon. This was mainly due to the December ’24 US labor market data, published last Friday, which turned out significantly above analyst expectations. The number of new jobs created, at around 250,000, was almost double the market consensus.

US kicks off reporting season with strong data

Expectations of Fed interest rate cuts were temporarily reduced further due to the positive data. At the beginning of this week, only a single interest rate cut this year – of 0.25 percentage points in December – was priced into the interest rate futures markets. Ten-year US Treasury bonds yielded over 4.8 per cent, and 30-year bonds over 5.0 per cent. Despite competition from high yields and the very firm US dollar exchange rate, particularly on Friday, gold prices remained high. Yesterday at noon, the December US consumer price data was published; the month-on-month rise slightly below market consensus was received with relief by the financial markets. Yields retreated, as did temporarily the US dollar, which in turn boosted (precious) metals prices.

US dollar gold rises above 2,700 mark

Last Thursday morning, gold traded at 2,665 US$ per ounce. After an intraday rise to 2,698 it dropped by roughly 40 US$ per ounce to 2,657 on Friday following the publication of US labor market data. Despite yields initially remaining high, the gold price rose continuously from the start of the trading week and was further spurred by yesterday’s US consumer price data. This morning, the precious metal therefore traded above the 2,700 mark for the first time this year, at 2,703.50 US$ per ounce, a good three per cent higher than at the start of the year.

Xetra-Gold starts trading day above 84 € per gram

Xetra-Gold reached its weekly high on Friday due to the brief sharp depreciation of the US dollar, following publication of the US labor market data. The precious metal rose from 83.20 € per gram on Thursday to 84.85 on Friday afternoon. With the slight recovery of the euro, it weakened to 83.30 on Monday. This morning, Xetra-Gold started trading at around €84.35 per gram.

Hoping to gain insights into the future US economic and fiscal policy, today’s markets are focusing on the confirmation hearing of US Treasury Secretary-designate Scott Bessent, who is set to appear before Congress at 16:30 CET. Following the inauguration of Donald Trump next Monday, the markets are likely to await indications on the implementation of these measures in the days to come.

I wish all readers a cozy and relaxing weekend.