Spot Gold Heads for 4th Weekly Gain Amid Trump Policy Uncertainty

Spot gold prices increased marginally, poised to record their fourth consecutive weekly gain. This development is attributable to the prevailing uncertainty surrounding the trade policies of US President Donald Trump, a situation which has led to a weakening of the dollar and an increased demand for safe-haven assets. According to Reuters, spot gold prices rose by 0.2% to reach $2,760.40 per troy ounce, marking a gain of over 2% for the week. US gold futures also rose by 0.1% to $2,767.60. The dollar experienced volatility on Thursday following Trump's comments calling for an immediate interest rate cut without providing clarity on tariffs. Investors are now awaiting policy announcements from global central banks, including the Bank of Japan, the Federal Reserve, and the European Central Bank. Traders predict a 99.5% chance that the Federal Reserve will maintain interest rates during its upcoming meeting. Should interest rates rise, the appeal of non-yielding precious metals like gold would decrease, potentially impacting gold's position as an inflation hedge

https://investasi.kontan.co.id/news/emas-spot-menuju-kenaikan-mingguan-ke-4-di-tengah-ketidakpastian-kebijakan-trump#google_vignette

Singapore central bank eases monetary policy, first time since March 2020

The Monetary Authority of Singapore (MAS) has eased monetary policy for the first time since 2020 in response to lower growth and inflation projections. The adjustment involves a minor reduction in the slope of the S$NEER (Singapore dollar nominal effective exchange rate) policy path, which is governed by the MAS through exchange rates rather than interest rates. The width of the policy path and its centre rate have remained unaltered. The MAS has stated that this measured adjustment is in line with the moderate and gradual appreciation path of the S$NEER to ensure price stability over the medium term. The decision to ease policy is a reflection of core inflation below 2% and a projected economic slowdown. The core inflation projection for 2025 was revised to 1.0%-2.0%, lower than the previous estimate of 1.5%-2.5%. The possibility of further policy easing in the future will depend on the core inflation rate and the extent of growth slowdown.

https://internasional.kontan.co.id/news/bank-sentral-singapura-longgarkan-kebijakan-moneter-pertama-kali-sejak-maret-2020

Japan's Core Inflation Rises, Hits 16-Month High in December

Japan's core consumer prices rose by 3.0% in December compared to the previous year, marking the fastest annual increase in 16 months. This has led to speculation that the Bank of Japan (BOJ) will maintain its policy of ultra-low interest rates. The data was released shortly before the conclusion of the BOJ's two-day policy meeting, where it is anticipated that short-term interest rates will be increased from 0.25% to 0.5%. The rise in the core consumer price index (CPI) was primarily driven by the expiration of government subsidies aimed at keeping utility bills low and high food prices due to the weak yen causing expensive imports. Another index, excluding fresh food and fuel prices, is closely monitored by the BOJ as an indicator of price pressures reflecting domestic demand. This index increased by 2.4% in December compared to the previous year, remaining steady from November. The BOJ discontinued its negative interest rate policy in March 2019 and raised its target of ultra-low interest rates.

https://internasional.kontan.co.id/news/inflasi-inti-jepang-meningkat-sentuh-level-tertinggi-dalam-16-bulan-pada-desember