Gold set for fourth week of gains amid Trump policy jitters
Fri Jan 24 2025
Gold prices edged higher and were on track for a fourth straight weekly gain on Friday, as uncertainty about U.S. President Donald Trump's trade plans took wind out of the dollar's sail, boosting demand for the safe-haven asset.
FUNDAMENTALS
* Spot gold edged up 0.2% to $2,760.40 per ounce, as of 0044 GMT and gained over 2% so far this week. U.S. gold futures added 0.1% to $2,767.60.
* The dollar was lower on Thursday in a choppy session, after comments from Trump called for an immediate drop in interest rates while providing no clarity on tariffs, while investors awaited a round of policy announcements from global central banks.
* The Bank of Japan is widely expected to raise interest rates at the end of a two-day meeting on Friday. Rate decisions from the U.S. Federal Reserve and European Central Bank (ECB) are scheduled for Wednesday and Thursday of next week, respectively.
* Traders see a 99.5% chance of the Fed keeping rates unchanged at its Jan. 28-29 meeting, according to the CME Group's FedWatch Tool. Higher rates dampen the appeal of the non-yielding bullion.
* Gold's appeal as an inflation hedge may be diminished if Trump's policies, which are seen as inflationary, lead the Fed to maintain interest rates higher for longer.
* Uncertainty about Trump's trade plans prevailed as he said tariffs on imports from Canada, Mexico, China and the European Union could be announced on Feb. 1.
* Lack of clarity about future policies has led market participants flocking to safe-haven assets such as gold to hedge against volatility.
* Spot silver was up 0.1% to $30.47 per ounce, palladium gained 0.2% to $993.46 and platinum rose 0.4% to 945.85.
* All of the three metals were poised for weekly gains.