Gold prices dropped on Monday, pressured by stronger-than-expected U.S. payroll data, which dampened hopes for significant Federal Reserve rate cuts. Spot gold fell 1% to $2,662.20 an ounce, while February gold futures slipped 1.3% to $2,680.01 an ounce.
The robust labor market data raised concerns that U.S. interest rates will remain higher for longer. This sentiment was reinforced by the Fed's signals that persistent inflation and a resilient labor market justify sustained high rates. Goldman Sachs revised its forecast, now expecting only two Fed rate cuts this year instead of three.
Investors are closely watching Wednesday’s U.S. inflation data for further clues on the Fed's policy direction. Higher rates tend to weigh on gold by increasing the opportunity cost of holding non-yielding assets.
Other precious metals also declined, with platinum futures dropping 2.6% to $970.35 an ounce and silver futures sliding 3.3% to $30.282 an ounce.
Meanwhile, copper prices edged higher, supported by expectations of increased stimulus from China. Benchmark copper futures rose 0.2% to $9,098.00 an ounce on the London Metal Exchange, while March copper futures gained 0.4% to $4.3217 a pound.
China’s trade data revealed December copper imports reached a 13-month high of 559,000 metric tons, reflecting strong demand. The surge in imports fueled optimism that Beijing might implement additional stimulus to counter economic headwinds.
Market sentiment was also shaped by incoming U.S. President Donald Trump's pledge to impose tariffs on Chinese goods. While this adds uncertainty, copper bulls remain hopeful for further economic support from Beijing to sustain growth.
Gold's safe-haven demand remains underpinned by economic uncertainties, but rising rates continue to challenge the metal's appeal.


US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts
Stock Futures Dip as Investors Await Key Payrolls Data
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data
United Airlines Flight to Tokyo Returns to Dulles After Engine Failure During Takeoff
Nvidia Weighs Expanding H200 AI Chip Production as China Demand Surges
Korea Zinc Plans $6.78 Billion U.S. Smelter Investment With Government Partnership
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift?
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs
Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag
Intel’s Testing of China-Linked Chipmaking Tools Raises U.S. National Security Concerns
Geopolitical Shocks That Could Reshape Financial Markets in 2025
iRobot Files for Chapter 11 Bankruptcy Amid Rising Competition and Tariff Pressures
CMOC to Acquire Equinox Gold’s Brazilian Mines in $1 Billion Deal to Expand Precious Metals Portfolio
EU Signals Major Shift on 2035 Combustion Engine Ban Amid Auto Industry Pressure 



