Silver prices fell in European trade on Monday away from a five-week high, about to test the support of $30 amid active profit-taking. 

Investors are shunning big positions before Trump’s inauguration today, with his speech expected to cast light on the priorities of his new administration, with a particular focus on tariffs. 

Prices 

Silver prices fell 0.7% to $30.14 an ounce, with a session-high at $30.44.

On Friday, silver lost 1.55%, the first loss in four days on profit-taking away from a five-week high at $30.98.

Trump’s Inauguration 

US President-elect Donald Trump will make his speech and be officially sworn in as President later today, with Trump likely to delineate his main policy goals, with a focus on the economy, internal and international policies. 

Trump is also expected to focus on his tariff plans, aimed at protecting US industries, which would sharpen trade tensions with international allies. 

US Rates

According to the Fedwatch tool, the odds of a 0.25% January interest rate cut stood at just 1%. 

Some Fed officials stated that recent Wednesday data showed US inflation continues to taper off, even with increasing uncertainty in upcoming months. 

Gold prices fell in European trade on Monday away from recent five-week highs on active profit-taking, as investors shun new positions before US President-elect Donald Trump’s inauguration.

Recent weak US data boosted the hopes for a Fed rate cut in March with investors awaiting more clues in upcoming weeks.

The Price

Gold prices fell 0.5% to $2689 an ounce, with a session-high at $2713.

On Friday, gold lost 0.45%, marking the first loss in four days on profit-taking away from a five-week high at $2724.

The precious metal rose 0.5% last week, marking the third weekly profit in a row as both the dollar and US yields sustain losses.

Trump’s Inauguration 

US President-elect Donald Trump will make his speech and be officially sworn in as President later today, with Trump likely to delineate his main policy goals, with a focus on the economy, internal and international policies. 

Trump is also expected to focus on his tariff plans, aimed at protecting US industries, which would sharpen trade tensions with international allies. 

US Rates

According to the Fedwatch tool, the odds of a 0.25% January interest rate cut stood at just 1%. 

Some Fed officials stated that recent Wednesday data showed US inflation continues to taper off, even with increasing uncertainty in upcoming months. 

Fed member Christopher Waller said three three or four interest rate cuts this year are still possible if US data continued to weaken. 

SPDR

Gold holdings at the SPDR Gold Trust rose 10.34 tons to a total of 879.12 tons, the highest since November 25.

Euro rose in European trade on Monday against the dollar away from 26-month lows ahead of US President-elect Donald Trump’s inauguration speech later today, which is expected to include more signals towards tariffs. 

The gains are contained by expectations the European Central Bank will cut interest rates in January, which would widen the rate gap with the US.

The Price

The EUR/USD pair rose 0.4% today to $1.0307, with a session-low at $1.0265.

The pair closed down 0.3% on Friday after bearish remarks from some ECB officials. 

The euro also rose 0.3% last week against the dollar, marking the first weekly profit in seven weeks as it moved away from a 26-month nadir at $1.0177. 

Trump’s Inauguration 

US President-elect Donald Trump will make his speech and be officially sworn in as President later today, with Trump likely to delineate his main policy goals, with a focus on the economy, internal and international policies. 

Trump is also expected to focus on his tariff plans, aimed at protecting US industries, which would sharpen trade tensions with international allies. 

European Rates

The markets are getting ready for the European Central Bank to cut interest rates by 25 basis points in January. 

The odds of such a cut is standing at 60%, as prices continue to taper off gradually towards the official target.

US Rates

According to the Fedwatch tool, the odds of a 0.25% January interest rate cut stood at just 1%. 

Rate Gap

The current eurozone-US interest rate gap stands at 135 basis points and will likely expand to 160 basis points in January.

A recent Reuters survey showed most economists expect the EUR/USD pair to reach parity in the first half of this year. 

The Japanese yen rose on Monday in Asian trade and resumed the gains against the US dollar, approaching a four-week high once more ahead of the imminent Bank of Japan’s policy meeting. 

The odds of a BOJ interest rate hike later this week rose following bullish remarks from some BOJ officials and after data that bolstered the case for policy normalization this year.

The Price

The USD/JPY pair fell 0.35% today to 155.70, with a session-high at 156.58.

The yen lost 0.75% on Friday against the dollar, marking the first loss in three days on profit-taking away from a four-week high at 154.97.

The yen rose 0.9% last week against the greenback, marking the second weekly profit in three weeks, and the largest since November 2024.

Bullish Remarks 

Bank of Japan Governor Kazuo Ueda said the BOJ will raise interest rates and adjust the degree of policy easing if the economy keeps sending signals of improvement. 

Ueda said the central bank will discuss the country’s economic developments at its meeting next week and will consider carefully before taking the interest rate decision.

The Bank of Japan Deputy Governor Ryozo Himino said the BOJ will discuss a potential rate hike next week amid gains in wages, and more clarity in regards to US policies.  

Japanese Rates

Following the remarks, the odds of a BOJ interest rate hike in January rose to 80%, with investors now waiting for more data and remarks this week to gather more clues.

An interest rate hike by the Bank of Japan to 0.5% would bring rates to 2008 highs when the global financial crisis broke out.