Gold jumps to 11-week peak amid Trump policy uncertainty, soft dollar

Gold prices climbed to a caller 11-week highest connected Wednesday, boosted by harmless haven request amid uncertainty surrounding U.S. President Donald Trump's commercialized policies and a softer dollar.

Spot golden added 0.1% to $2,748.18 per ounce arsenic of 0236 GMT, aft hitting its highest since Nov. 5, 2024 earlier successful the session. U.S. golden futures gained 0.1% to $2,762.90.

"There is inactive immoderate uncertainty regarding erstwhile Trump wants to instrumentality his policies connected large trading partners of the U.S., causing a batch of uncertainty successful absorption of dollar, which is the superior short-term catalyst driving bullish code successful golden price," said Kelvin Wong, OANDA's elder marketplace expert for Asia Pacific.

Trump held backmost from imposing commercialized barriers connected his archetypal time successful bureau connected Monday, pushing the dollar lower.

A weaker dollar makes golden much charismatic for overseas buyers. Gold is considered a harmless concern during economical and geopolitical uncertainty.

Trump vowed to deed the European Union with tariffs and said his medication was discussing a 10% tariff connected goods imported from China starting Feb. 1.

Gold's entreaty arsenic an ostentation hedge whitethorn beryllium diminished if Trump's policies, which are seen arsenic inflationary, pb the Federal Reserve to support involvement rates higher for longer.

After 2 years of advancement connected ostentation and amazingly persistent economical growth, the Fed meets adjacent week with 1 oculus connected the caller Trump administration's policies and different connected the enslaved marketplace that has ratcheted up borrowing costs adjacent arsenic U.S. cardinal bankers person been cutting rates.

The Fed is expected to clasp its benchmark complaint dependable successful the existent 4.25%-4.50% scope astatine its Jan. 28-29 argumentation meeting, aft reducing it by a afloat percent constituent since September 2024.

Higher involvement rates dampen non-yielding gold's appeal.

Spot metallic fell 0.4% to $30.74 per ounce and palladium shed 0.2% to $955.11. Platinum steadied astatine 943.10.

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