Gold Climbs to Over Two-Week High on Safe-Haven Demand; Trump's Policies in Focus
Gold hit a more than two-week high on Thursday, fuelled by safe-haven buying, while the market took out positions ahead of the Federal Reserve's rate outlook and the potential impact of President-elect Donald Trump's proposed trade tariffs.
Spot gold rose 1.2% to $2,654.24 an ounce by 02:57 p.m. EST (1957 GMT), hitting its highest since Dec. 16. U.S. gold futures settled 1.1% higher at $2,669.
Bullion thrives in low-interest-rate environments and acts as a hedge against economic and geopolitical risks.
Russia launched a drone strike on Kyiv early on Wednesday, causing damage in at least two districts, while the Israeli military struck a suburb of Gaza City.
Traders await next week's U.S. job openings data, the ADP employment report, the Fed's December FOMC meeting minutes and the U.S. employment report to gauge the interest-rate outlook for 2025.
In 2024, rate cuts, central-bank buying and geopolitical tensions drove gold to record highs with an over 27% annual gain, its biggest since 2010.
Trump's inauguration on Jan. 20 has heightened uncertainty, with his proposed tariffs and protectionist policies expected to be inflationary and potentially spark trade wars.
Among other metals, spot silver rose 1.9% to $29.43 an ounce, palladium was steady at $910.64 and platinum climbed 1.9% at $920.72.
Source : Reuters
