(Bloomberg) -- Gold held losses after President-elect Donald Trump said his tariff policy plan won’t be pared back.
Bullion was down by as much as 1% before paring some of the losses after Trump denied a Washington Post report that his aides are considering narrowing his tariff plan so that it would only apply to limited specific critical imports.
“Gold, just like most other assets, received a boost early on after the Washington Post story helped send the dollar tumbling,” said Ole Hansen, head of commodities strategy at Saxo Bank. “Gains however did not last, with gold and silver both running into profit taking before tumbling into negative territory as the story was rejected by Trump.”
Money managers are bullish on gold this year after its stellar run in 2024 as potential negative impact on trade flows, inflation and the global economy from Trump’s second term will likely spur investors to buy more bullion to protect their wealth.
For gold traders, they’ll focus on a slew of US data this week including nonfarm payrolls and job openings that may shed light on the Federal Reserve’s easing trajectory after policymakers over the weekend reaffirmed the view that the US central bank will take a more cautious approach to cutting rates this year.
Spot gold fell 0.2% to $2,634.40 an ounce as of 10:55 a.m. in New York. Silver, platinum and palladium advanced.
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