Gold moved positively on Monday trading as the market was in cautious mode as the market turned its attention to the US CPI economic data to be published this week.
At exactly 9.25 am, the price of gold was at $2,664.77, up 0.17% since it opened in early trading on Tuesday in the Asian session.
Last Friday, the NFP report showed that the number of jobs increased from expectations for November to 227,000 compared to expectations of 220,000.
According to analysts, the strong labor market will strengthen the Fed's confidence to cut interest rates with a high chance of 85% at the FOMC meeting in December.
In addition, the upcoming rise of President Donald Trump in January 2025 will trigger an aggressive global trade war when the imposition of high tariffs, increased government spending and massive tax cuts.
Over the weekend, China responded to Trump's threat with a statement signaling that the People's Bank of China (PBOC) had resumed gold purchases for the Fed after a six-month hiatus.
The PBOC's repurchase of precious metals tactics are being used to prevent the United States from dominating the market by using the US dollar as a political weapon.
However, the potential for higher inflation, tax cuts and a larger budget deficit, along with concerns about US dollar dependence, could ultimately lead to gold prices remaining better supported in the coming year.
