Gold hits 4-week peak on safe-haven demand
Friday, 10 January 2025
Gold prices rose to a near four-week high on Thursday, supported by safe-haven demand, while investors weighed how US President-elect Donald Trump's policies would impact the economy and inflation, reports Reuters.
Spot gold inched up 0.4 per cent to $2,672.77 per ounce, as of 1155 GMT. US gold futures rose 0.8 per cent to $2,690.30.
"Safe-haven demand is modestly supporting gold, offsetting downside pressure coming from a stronger dollar and higher rates," UBS analyst Giovanni Staunovo said.
The dollar index hovered near a one-week high, making gold less appealing for holders of other currencies, while the benchmark 10-year Treasury yield stayed near eight-month peaks.
"Market uncertainty is likely to persist with the upcoming inauguration of Donald Trump as the next US president," Staunovo said.
Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter.
Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well.
Spot silver rose 0.8 per cent to $30.34 per ounce, platinum was steady at $955.85 and palladium shed 0.1 per cent to $927.75.