Gold is slightly lackluster heading into year-end trading as the US dollar (US) regains strength as a result of Donald Trump's rhetorical policies on BRICS countries while geopolitical tensions are easing.
At 9.20 am, gold prices were at $2,641.70, up 0.11% since it opened early Tuesday in Asian trading.
The metal market is now cautious following Donald Trump's statement and shifting to the USD after the 100% tariff was imposed and this could further strengthen the US economy.
Based on data, the US economy showed the ISM Manufacturing PMI survey for November rising to its highest reading since June. S&P Global also announced that US manufacturing activity improved, indicating that the economy remains robust.
Meanwhile, Atlanta Fed President Raphael Bostic said he was not convinced that a cut was needed at the December meeting but he believed policy easing should be implemented in the coming months.
He added that interest rates should be at a reasonable level without being disrupted by economic activity.
On the geopolitical front, the US administration is concerned that the ceasefire agreement may be broken after news that Israeli and Hezbollah forces are still exchanging fire in recent days.
This week, the US economy will feature speeches from Fed members including Chairman Jerome Powell, JOLTS employment data for October, the S&P Services PMI survey and the Non-Farm Payroll (NFP) report.
