• The gold price is gaining strength to near $2,625 during Monday’s early Asian session.
• Trump Administration May Raise Gold Price Amid Uncertainty.
• The hawkish position of the US Fed may limit the augment in precious metal prices.

The price of gold (XAU/USD) is attracting some buyers towards the level of around $2,625 during Monday’s early Asian session. Donald Trump’s tariffs and trade policies could spark trade conflicts by supporting the yellow metal. However, the prospect of fewer interest rate cuts by the Federal Reserve (Fed) in 2025 could limit the rally in the gold price. Trading volume is lower than usual before the New Year holidays.

Donald Trump’s potential return to the White House could exacerbate global trade tensions, fueling geopolitical crises and possibly driving up the price of gold. “Trade tensions, potential conflicts and unpredictable policies under his leadership may prompt investors to choose gold as a safe-haven asset,” said managing director of RiddiSiddhi Bullions Limited.

Moreover, growing geopolitical tensions in the Middle East and the ongoing Russia-Ukraine war may augment the price of gold, a customary secure asset. On Sunday, Israeli forces carried out attacks on two hospitals in northern Gaza, including the upper floor of al-Wafaa Hospital in Gaza City, killing at least seven people and seriously wounding others.

On the other hand, rising expectations for fewer Fed rate cuts could strengthen the dollar and put selling pressure on the price of USD-denominated goods. A strengthening US dollar has a negative impact on the bullion overall, making it less attractive to investors looking for underperforming assets.