Gold prices surge ahead of Trump's inauguration, reaching highest level since December, signaling potential weekly increase.

From Investing.com: 2025-01-13 03:13:00

Gold prices rose by 0.74% ahead of Donald Trump’s inauguration, despite strong US job data. Traders expect the Fed to lower interest rates by only 27 basis points this year. XAU/USD reached its highest level since December, signaling a potential weekly increase of more than 1.7%.

The euro fell by 0.52% against the USD after a better-than-expected US nonfarm payroll report. Traders expect at least two additional rate cuts by the ECB but anticipate no changes in the US base rate through May 2025. EUR/USD may be undervalued in the short term, with support at 1.01970 and resistance at 1.02540.

The Japanese yen declined by 0.25% as the DXY surged following strong US labor data. The US added 256,000 jobs last month, surpassing the forecast of 160,000. Analysts expect only a 27-basis-point interest rate cut in 2025 due to increased inflation expectations. Speculation about the BOJ adjusting its price forecast upward has arisen.



Read more at Investing.com: Gold Surges Amid Uncertainty Ahead of Trump’s Inauguration