The prices of gold rose to a nearly four-week high on Thursday, supported by demand for safe havenwhile investors weighed how the policies of the president-elect of USA, donald trumpwould affect the economy and the inflation.
He gold spot rose 0.3% to $2,670.16 per ounce. The gold futures Americans gained 0.6% to $2,689.50.
He dollar index hovered around one-week highs, making gold less attractive to holders of other currencies, while the yield on 10-year Treasury bonds remained near eight-month highs.
trump is considering declaring a national economic emergency to legally justify a series of universal tariffs on allies and adversaries, CNN reported Wednesday, citing sources familiar with the matter.
The Republican will take office on January 20 and his proposed tariffs could trigger trade wars and inflation, posing significant economic risk. In such a scenario, gold, considered a hedge against inflation, is likely to perform well.
Investors’ attention now turns to US nonfarm payrolls – due out this Friday – for more clarity on the Federal Reserve’s interest rate path.
Nonfarm payrolls probably rose by 160,000 jobs in December, after rising by 227,000 in November, according to a Reuters poll.
What the market expects regarding the evolution of gold
He gold reached maximums of almost four weeks Wednesday, after the weaker-than-expected U.S. private employment report hinted that the Fed may be less cautious about easing rates this year.
However, Minutes from the Fed’s December policy meeting showed officials’ concern that Trump’s proposed tariffs and immigration policies could prolong the fight against rising prices. High rates reduce the attractiveness of the asset, which does not yield interest.
The World Gold Council said on Wednesday that Physically backed gold exchange-traded funds recorded their first inflow in four years.
Among other precious metals, spot silver rose 0.3% to $30.21 an ounce; platinum fell 0.2% to $953.55; and palladium fell 0.8% to $920.75.
Source: Ambito
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