Gold prices increase to 11-week high amid weaker dollar
Date
1/22/2025 1:36:41 AM
(MENAFN) Gold prices climbed to an 11-week high on Wednesday, driven by a weaker dollar and rising demand for safe-haven assets amid uncertainty over U.S. President Donald Trump's trade policies.
Spot gold increased by 0.1 percent to USD2,748.58 per ounce as of 0105 GMT, after reaching its highest level since November 5 earlier in the session.
U.S. gold futures also edged up 0.1 percent to USD2,763.40.
Trump opted not to impose tariffs on his first day in office, which contributed to the dollar's decline.
A weaker dollar enhances gold's appeal to foreign buyers. Gold is often viewed as a secure investment during times of economic and geopolitical uncertainty.
Trump has pledged to impose tariffs on the European Union and stated that his administration is considering a 10 percent tariff on Chinese imports starting February 1.
However, gold's attractiveness as a hedge against inflation could diminish if Trump's policies, which are perceived as inflationary, lead the Federal Reserve to maintain higher interest rates for an extended period.
Higher interest rates tend to reduce the appeal of non-yielding assets like gold.
In other precious metals, spot silver remained steady at USD30.85 an ounce, palladium inched up 0.1 percent to USD958.11, and platinum settled at USD944.05.
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