Gold climbs to 3-month high, weak dollar and uncertainty over tariffs
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Gold prices soared to their highest levels since October, bolstered by U.S. President Donald Trump’s comments advocating for global rate cuts and ongoing uncertainty surrounding tariff policies. The precious metal is set for its fourth consecutive weekly gain, as investors seek refuge in safe-haven assets.
Gold surges amid dollar weakness
Spot gold reached $2,770.39 per ounce during early European trading, with intraday highs touching $2,777.10. The U.S. Dollar Index (DXY) dipped over 1% for the week, marking its worst weekly performance in two months. This dollar softness made gold more appealing for foreign buyers. U.S. gold futures also climbed, reflecting continued optimism in the bullion market.
Trump’s comments boost safe-haven demand
Speaking at the World Economic Forum, Trump called for immediate rate cuts globally, sparking market volatility. However, the lack of detailed tariff announcements from his administration has added to investor uncertainty. This combination has driven increased demand for gold as a hedge.
Impact of global Central Banks
The Bank of Japan’s recent rate hike, raising borrowing costs to their highest since the 2008 financial crisis, strengthened the Japanese yen, further pressuring the dollar. Upcoming decisions from the U.S. Federal Reserve and the European Central Bank next week will also shape market sentiment, with traders predicting no immediate Fed rate cuts.
Bullish outlook for gold and other metals
Analysts remain optimistic about gold’s trajectory, with forecasts suggesting a potential milestone of $3,000 per ounce this year. Silver, palladium, and platinum also posted gains, with weekly increases across the board signaling strong momentum in the broader metals market.
Gold surges amid dollar weakness
Spot gold reached $2,770.39 per ounce during early European trading, with intraday highs touching $2,777.10. The U.S. Dollar Index (DXY) dipped over 1% for the week, marking its worst weekly performance in two months. This dollar softness made gold more appealing for foreign buyers. U.S. gold futures also climbed, reflecting continued optimism in the bullion market.
Trump’s comments boost safe-haven demand
Speaking at the World Economic Forum, Trump called for immediate rate cuts globally, sparking market volatility. However, the lack of detailed tariff announcements from his administration has added to investor uncertainty. This combination has driven increased demand for gold as a hedge.
Impact of global Central Banks
The Bank of Japan’s recent rate hike, raising borrowing costs to their highest since the 2008 financial crisis, strengthened the Japanese yen, further pressuring the dollar. Upcoming decisions from the U.S. Federal Reserve and the European Central Bank next week will also shape market sentiment, with traders predicting no immediate Fed rate cuts.
Bullish outlook for gold and other metals
Analysts remain optimistic about gold’s trajectory, with forecasts suggesting a potential milestone of $3,000 per ounce this year. Silver, palladium, and platinum also posted gains, with weekly increases across the board signaling strong momentum in the broader metals market.