BENGALURU- Gold prices were flat on Monday as a stronger-than-expected US jobs report reinforced the Federal Reserve’s cautious stance on rate cuts, while uncertainty surrounding the incoming Trump administration’s policies continued to fuel safe-haven demand.
Spot gold held ground at $2,689.09 per ounce, hovering near the one-month high hit on Friday.
US gold futures gained 0.2 percent to $2,719.50.
“The yellow metal has shown resilience and the strength may potentially reflect its renewed appeal as a hedge against inflation risks, particularly as questions are now arising over the Fed’s credibility, with markets looking for a less dovish outlook than what US policymakers guided for in December,” IG market strategist Yeap Jun Rong said.
The upbeat jobs report on Friday supported the Fed’s cautious stance toward further policy easing this year amid mounting fears that pledges by US President-elect Donald Trump to impose or massively raise tariffs on imports could stoke inflation.