Gold Price News: Stabilization despite global uncertainties

The gold price remains stable today at USD 2,600 per troy ounce despite the ongoing volatility on the global markets. This continued price stability of the precious metal is particularly remarkable in light of the latest political and economic developments in the USA. At present, the relatively low gold price reflects a certain caution on the part of investors. This caution is largely influenced by the uncertainties associated with the expected political and economic measures of the newly elected Trump administration. Investors are eagerly awaiting clear signals regarding future economic policy, which is keeping the gold market in a wait-and-see position.

One week after his re-election, Donald Trump nominates several key figures for his new term of office. Elon Musk is to head the newly created “Department of Government Efficiency” and work closely with the White House on measures to reduce government spending and cut red tape. Musk, who has already donated 120 million dollars to Trump's election campaign, sees this as a central task. These developments have the potential to put pressure on the gold market, as greater deregulation and cost-cutting may lead to less demand for safe-haven assets such as gold.

In addition to Musk, Trump has nominated conservative Fox News host Pete Hegseth as Secretary of Defense and Republican Congressman Mike Waltz as National Security Advisor. These appointments signal Trump's focus on more restrictive international policies, which continue to influence investor sentiment.

Geopolitical tensions remain high in Ukraine after North Korea deployed troops to support Russia. US Secretary of State Antony Blinken condemned this and announced a “tough response”. These developments have the potential to increase demand for gold as investors may flee to the safe-haven market in the face of increasing uncertainty.

Meanwhile, Ukrainian agents have carried out an attack in Crimea in which a Russian military officer was killed. These escalations are exacerbating the geopolitical environment and impacting the gold market as investors increasingly consider safe-haven investment options such as gold.

The latest inflation data from the US shows an increase to 2.60% for October 2024, compared to 2.44% in the previous month. This reflects a year-on-year shift, as the rate was still at 3.24% in October 2023. This development is particularly relevant for the monetary policy of the Federal Reserve, which makes its interest rate decisions heavily dependent on the inflation outlook.

The gold price, which is traditionally seen as a hedge against inflation, is showing a stable trend, which could be due to changing expectations regarding US monetary policy. Despite the current stability of inflation rates, the market has reduced the probability of a 25 basis point rate cut by the Fed in December 2024 to 60.4%, down from 77.3% the previous week.

This information is crucial for the gold market, as a higher interest rate level typically increases the non-yielding disadvantage of gold, which could reduce the attractiveness of gold investments. The Fed's upcoming decisions and other economic data, such as the consumer price index, will therefore be closely monitored and could have a significant impact on market dynamics and the price development of gold.

The gold price is currently close to the critical support level of USD 2,600 per troy ounce. This level serves as an important technical base - falling below it could lead to increased downward pressure and the next support level at USD 2,580 could come into focus. On the upside, short-term resistance is located at USD 2,615. Should the gold price break through this area, an upward movement towards USD 2,630 would be possible, which could indicate a potential trend reversal.

Ahead of the upcoming US inflation data and further strategic announcements by President Trump, the market situation remains volatile. Analysts predict that the uncertainties surrounding the planned deregulation and austerity measures could initially dampen the appeal of gold as a safe haven investment. However, if the dollar loses strength or the geopolitical situation deteriorates further, the gold price could benefit from increased demand in the short term.