Gold Holds Gain Before US Rates Decision as Trump Threats Linger
Gold held an advance ahead of the Federal Reserve’s interest rate decision later Wednesday, with traders also weighing President Donald Trump’s latest tariff threats.
Bullion traded near $2,763 an ounce — less than $30 shy of its all-time high — as investors shifted focus to the US central bank’s first meeting of 2025. Policymakers are overwhelmingly expected to keep rates steady this week, though Fed Chair Jerome Powell is expected to give a press conference that may offer clues on the outlook for the next gathering in March. Lower rates tend to benefit gold, as it doesn’t pay interest.
Markets were also digesting the most recent comments from Trump on US trade policy, which stoked increased appetite for haven assets like gold. The precious metal climbed 0.8% on Tuesday — even as the dollar strengthened — after the president said he favors imposing universal tariffs that are “much bigger” than 2.5%. The threats, if enacted, may reshape US supply chains and hurt growth.
Trading is expected to be thin in Asia on Wednesday due to the Lunar New Year holidays. Spot gold was little changed at $2,763.05 an ounce at 8:18 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, following a two-day rally. Silver and platinum were steady, while palladium dipped.
Source: Bloomberg
