Gold prices jumped to their highest point in 11 weeks on Wednesday. This increase happened because the dollar got weaker and many people are worried about U.S. President Donald Trump’s trade decisions, which made gold seem like a safer choice to invest in.
– Current Prices: Gold is currently priced at $2,748.58 per ounce and U.S. gold futures are at $2,763.40.
– What’s Happening: Trump didn’t impose new trade barriers when he took office, which caused the dollar’s value to drop. When the dollar is weaker, gold becomes more appealing for buyers in other countries.
– Safe Investment: Gold is often seen as a safe investment during tough economic and political times.
– Trade Tariffs: Trump mentioned he might impose a 10% tariff on goods from China and might also target the European Union with tariffs.
– Interest Rates: Higher interest rates can make gold less attractive since it doesn’t earn interest. The Federal Reserve is likely to keep interest rates steady at 4.25%-4.50% in their upcoming meeting on January 28-29, after previously lowering rates.
– Gold Holdings: The SPDR Gold Trust, the largest gold fund in the world, reported a drop in its gold holdings to 871.66 tonnes.
– Other Precious Metals: Meanwhile, silver remained stable at $30.85, palladium increased slightly to $958.11, and platinum was steady at $944.05.
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