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Gold Prices Exceeding USD5,200K level
(MENAFN) Gold extended its historic upswing on Wednesday, pushing beyond the $5,200 mark as investors reacted to a weakening US dollar and lingering geopolitical uncertainty ahead of a key policy decision by the US Federal Reserve, according to reports.
In spot trading, gold climbed roughly 1.6% on the day to reach $5,264.20 per ounce by 0700 GMT, after briefly touching a fresh record high of $5,271.45 earlier in the session. The metal has added close to 9% over the course of the week.
Over a longer horizon, gold’s rally has been dramatic, with prices rising by about 90.5% over the past year and roughly 17% since the beginning of the year. The gains have been fueled by intensifying trade and geopolitical tensions, alongside interest rate cuts by major central banks.
Silver followed a similar trajectory, jumping 2.4% to $114.8 per ounce. On an annual basis, silver prices have surged by more than 277.6%.
Market participants have largely attributed the strong performance in precious metals to the declining US dollar and ongoing geopolitical risks. On Tuesday, US President Donald Trump dismissed concerns about the currency’s weakness, expressing approval of the trend.
“I think it’s great,” Trump said of the weaker dollar. “I mean the value of the dollar, look at the business we’re doing. No, dollar is doing great. You know it’s very interesting, if you look at China or Japan, I used to fight like hell with them because they always wanted to devalue their yen ... you know that, the yen and yuan, and they’d always want to devalue it. They devalue, devalue, devalue. And I said, ‘not fair.’ They devalue, because it’s hard to compete when they devalue.”
The US dollar index has dropped more than 2.7% over the past week, and on Tuesday the currency fell to its lowest level since February 2022.
At the same time, worries about a slowing labor market and rising living costs have weighed heavily on sentiment, with US consumer confidence sliding in January to its weakest level in more than 11 and a half years.
Trump also said he plans to announce his choice for the next Federal Reserve chair in the near future, adding that he expects interest rates to decline once the new leadership takes over.
Meanwhile, as the Federal Reserve continues its January policy meeting, it is widely expected that officials will leave interest rates unchanged.
In spot trading, gold climbed roughly 1.6% on the day to reach $5,264.20 per ounce by 0700 GMT, after briefly touching a fresh record high of $5,271.45 earlier in the session. The metal has added close to 9% over the course of the week.
Over a longer horizon, gold’s rally has been dramatic, with prices rising by about 90.5% over the past year and roughly 17% since the beginning of the year. The gains have been fueled by intensifying trade and geopolitical tensions, alongside interest rate cuts by major central banks.
Silver followed a similar trajectory, jumping 2.4% to $114.8 per ounce. On an annual basis, silver prices have surged by more than 277.6%.
Market participants have largely attributed the strong performance in precious metals to the declining US dollar and ongoing geopolitical risks. On Tuesday, US President Donald Trump dismissed concerns about the currency’s weakness, expressing approval of the trend.
“I think it’s great,” Trump said of the weaker dollar. “I mean the value of the dollar, look at the business we’re doing. No, dollar is doing great. You know it’s very interesting, if you look at China or Japan, I used to fight like hell with them because they always wanted to devalue their yen ... you know that, the yen and yuan, and they’d always want to devalue it. They devalue, devalue, devalue. And I said, ‘not fair.’ They devalue, because it’s hard to compete when they devalue.”
The US dollar index has dropped more than 2.7% over the past week, and on Tuesday the currency fell to its lowest level since February 2022.
At the same time, worries about a slowing labor market and rising living costs have weighed heavily on sentiment, with US consumer confidence sliding in January to its weakest level in more than 11 and a half years.
Trump also said he plans to announce his choice for the next Federal Reserve chair in the near future, adding that he expects interest rates to decline once the new leadership takes over.
Meanwhile, as the Federal Reserve continues its January policy meeting, it is widely expected that officials will leave interest rates unchanged.
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