On January 16, the spot price of gold in London initially fell but then rose overnight. COMEX February gold futures closed down 0.26%, while SHFE gold closed up 0.04%. Uncertainty persists in the Iran situation; although the immediate threat of a US-Iran conflict has been paused, the US has imposed sanctions on numerous Iranian individuals, entities, and several foreign companies linked to Iran, indicating that geopolitical instability is far from over. In the short term, gold is expected to trade within a high range.
On the data front, figures from the US Department of Labor showed that initial jobless claims for the week ending January 10 dropped to 198,000, significantly lower than the market expectation of 215,000 and the previous figure of 208,000, highlighting the continued resilience of the labor market. The US government indicated that it will announce the new Federal Reserve Chair nominee in the coming weeks. The President of the Kansas City Fed stated that there is currently no justification for interest rate cuts, suggesting that reducing rates could undermine progress in curbing inflation and offer no benefit to the labor market.
Regarding geopolitics, although NATO countries have deployed military personnel to Greenland, the US government stated this does not hinder former President Trump's objectives concerning the island. The situation with Iran is growing increasingly tense; the White House indicated that the Trump administration is closely monitoring developments and keeping all options on the table, noting that Trump has already spoken with Israeli Prime Minister Netanyahu. Judging by the performance of precious metals and crude oil last night, the immediate threat of a US-Iran conflict has been paused, but geopolitics undoubtedly remains a short-term focal point. The escalating situation in Iran is driving gold to maintain a relatively strong trend.
Comments