Trump uncertainties push safe-haven gold to near all-time high
Gold prices soared to near three-month highs on Wednesday, trading just below its record peak, fuelled by a soft dollar and lack of clarity around U.S. President Donald Trump's policy plans, which investors fear could trigger trade wars and elevate market volatility.
Spot gold added 0.4% to $2,755.2 per ounce as of 02:29 p.m. ET (1629 GMT). Prices were at their highest since Oct. 31 when they hit their all-time high of $2,790.15.
U.S. gold futures settled 0.4% higher at $2,770.90.
The dollar index dipped to a more-than-three-week low earlier in the session, making greenback-priced bullion less expensive for holders of other currencies.
"There are uncertainties with proposed tariffs and other things, and gold typically does well when there's a large or even a moderate amount of uncertainty in the market, it's a natural place where people gravitate to," said Ryan McIntyre, senior portfolio manager at Sprott Asset Management.
Trump said his administration was discussing imposing a 10% tariff on goods imported from China on Feb. 1, the same day that he previously said Mexico and Canada could face levies of around 25%.
Gold is often viewed as a haven during times of economic and geopolitical turmoil, but Trump's proposed policies are broadly regarded as inflationary, potentially compelling the U.S. Federal Reserve to sustain elevated interest rates for an extended period to rein in rising price pressures.
Spot silver was steady at $30.86, but hovered near a one-month high it hit on Jan. 16.
Source: Reuters
