Gold poised to overtake record peak as dollar drops on Trump remarks
Gold prices climbed over 1% on Friday, closing in on its all-time-high hit in October, as a weakening dollar on U.S. President Donald Trump's push for lower rates and tariff uncertainty drove the metal towards its fourth straight weekly rise.
Spot gold was up 0.7% at $2,772.79 per ounce by 01:42 p.m. ET (1842 GMT). The prices, which have added 2.7% so far this week, are a mere $17.3 away from the record high of $2,790.15 hit on Oct. 31.
U.S. gold futures settled 0.5% up at $2,778.90 per ounce.
In this climate of uncertainty, zero-yield gold continued to shine as a reliable hedge against inflation and instability, while it remains particularly appealing in a low-interest-rate environment.
At the World Economic Forum on Thursday, Trump called for an immediate reduction in interest rates. The dollar (.DXY), opens new tab hit an over one-month low, making bullion less expensive for foreign buyers.
"Focus has now shifted to Feb. 1 in terms of tariff or trade policy announcements, with less focus on the Jan. 29 Fed meeting," Standard Chartered said in a note.
Traders expect the Fed to leave rates unchanged at next week's meeting.
Spot silver was up 0.8% at $30.67 per ounce and platinum rose 0.6% to $948. Palladium gained 0.1% to $992.75, hitting its highest since November 25.
Source: Reuters
