Gold prices rose slightly on Thursday as the dollar weakened, making the precious metal more attractive to investors. The focus key phrase, gold prices rose, reflects the latest market movement. Investors are closely watching U.S. policies, particularly President Donald Trump’s stance on interest rates.
Spot gold increased by 0.1% to $2,753.19 per ounce. This comes after reaching a three-month high on Wednesday, nearing its all-time peak of $2,790.15 in October. Meanwhile, U.S. gold futures settled 0.2% lower at $2,765 per ounce.
President Trump recently called for an immediate reduction in interest rates. Speaking at the World Economic Forum, he emphasized his commitment to reversing inflation and urged other countries to follow similar economic measures. A low-interest rate environment benefits gold since the metal does not yield interest, making it a preferred safe-haven asset.
Despite Trump’s push, traders believe there is a 99.5% probability that the Federal Reserve will keep interest rates unchanged at its upcoming January 28-29 meeting. However, uncertainty surrounding future policies has led investors to flock toward gold as a hedge against market volatility.
Trump’s trade policies also remain a key concern for markets. He has hinted at the possibility of new tariffs on imports from Canada, Mexico, China, and the European Union as early as February 1. Additionally, he has warned Russia and other countries about potential sanctions if no agreement is reached to end the conflict in Ukraine.
Market strategist Daniel Pavilonis from RJO Futures noted that gold’s movement has been influenced by the White House’s direction. He stated that the recent volatility was largely due to anticipation surrounding Trump’s policy announcements.
With increasing global economic uncertainty, gold prices could remain strong. Many investors are waiting for more clarity on upcoming policies before making major moves. In the short term, gold might pause before another potential rally.
Meanwhile, other precious metals showed mixed performances. Spot silver dropped 1.1% to $30.45 per ounce, while platinum fell 0.2% to $943.84 per ounce.
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Gold prices rose as the dollar weakened following Trump’s call for lower interest rates. Investors focus on U.S. policies.
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