Gold climbed above $2,770 per ounce on Friday, reaching its highest level since October and approaching its all-time high of $2,790. The rally was driven by a weaker dollar and signals from President Trump favoring lower interest rates.
Gold approaches record high on Trump remarks
Speaking via video at the World Economic Forum in Davos, Trump delivered a wide-ranging policy address, during which he avoided direct mention of the Federal Reserve but made clear his support for reducing interest rates to stimulate the economy. Additionally, ongoing uncertainty surrounding Trump’s proposed tariffs and immigration policies prompted traders to seek the safety of gold, reinforcing its appeal as a haven asset. Investors are also keeping a close watch on policy moves by global central banks.
Bank of Japan raises interest rates
On Friday, the Bank of Japan raised interest rates as expected, while the Federal Reserve is projected to hold rates steady at its meeting next week. Meanwhile, the European Central Bank is widely anticipated to implement a rate cut.
Gold to end the week up
For the week, gold is poised to notch its fourth consecutive weekly gain, reflecting sustained investor demand amid global economic and policy uncertainty. The combination of dovish central bank actions and geopolitical risks continues to support the precious metal’s upward momentum.
