Gold declines

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BENGALURU- Gold cut early losses on Monday as investors looked forward to Donald Trump’s inauguration speech for clarity on the incoming administration’s policies, which could offer further clues on the Federal Reserve’s interest rate path.

Spot gold was down 0.1 percent at $2,697.60 per ounce, after falling 0.5 percent earlier in the day. US gold futures dropped 0.3 percent to $2,740.10.

“Gold has been on the receiving end of selling pressure today, but the precious metal’s status as a traditional safe-haven asset should limit the immediate downside,” said Tim Waterer, chief market analyst at KCM Trade. 

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“If we happened to hear a more conciliatory or softer tone from President Trump regarding trade and tariff polices, this could alleviate inflationary concerns, which may see the US dollar and Treasury yields recede, and gold is potentially one asset which could benefit from this scenario.”

Market players were keenly awaiting Trump’s inauguration later in the day, and his broad trade tariff policies are expected to further ignite inflation and trigger trade wars, potentially increasing bullion’s safe-haven appeal.

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