Ammon News - Gold prices were little changed on Monday, while investors awaited a slew of U.S. economic data including the December nonfarm payrolls report for further guidance on the Federal Reserve's stance on interest rates.

Spot gold held its ground at $2,635.39 per ounce by 0510 GMT. U.S. gold futures dropped 0.2% to $2,646.80.

How the U.S. jobs data fares this week could hold the key to whether gold breaks out of its recent range, said Tim Waterer, chief market analyst at KCM Trade.

"There is a plethora of U.S. data due for release this week (including ISM Services PMI data), and any downside misses could hurt the USD and help gold."

The U.S. jobs report, due on Friday, is expected to provide more clues to the Fed's rate outlook after the U.S. central bank rattled markets last month by reducing its projected cuts for 2025.

Investors are also awaiting ADP hiring and job openings data, as well as minutes of the Fed's last policy meeting for further direction.

Gold flourishes in a low-interest-rate environment and serves as a hedge against geopolitical uncertainties and inflation.

U.S. President-elect Donald Trump is set to return to office on Jan. 20 and his proposed tariffs and protectionist policies are expected to fuel inflation.

This could prompt the Fed to go slow on rate cuts, limiting gold's upside. After three rate cuts in 2024, the Fed has projected only two reductions for 2025 due to persistent inflation.

U.S. stocks rebounded on Friday at the end of a holiday-shortened week as a broad rally sent all three major stock indexes to a higher close.

The U.S. central bank's benchmark policy rate should stay restrictive until it is more certain that inflation is returning to its 2% target, Richmond Federal Reserve President Thomas Barkin said on Friday.
Spot silver was down 0.2% at $29.57 per ounce, platinum dipped 0.7% to $931.30 and palladium fell 0.4% to $918.22.

Reuters