Safe-Haven Demand Drives Gold to $2,770, Market Volatility Fueled by U.S. Trade Policy and Global Central Bank Meetings
Gold soared to near three-month highs on Friday and was on track for a fourth straight weekly gain as uncertainty over U.S. President Donald Trump’s trade policies weakened the dollar, boosting demand for safe-haven bullion.
Spot gold jumped 0.8% to $2,774.49 per ounce as of 0255 GMT, gaining more than 2% so far this week. Earlier in the day, prices reached $2,777.10, the highest since October 31, when gold hit a record $2,790.15.
U.S. gold futures climbed 0.6% to $2,781.80.
The dollar is down more than 1% on the week, heading for its worst weekly fall in two months, making gold less expensive for foreign buyers.
Jigar Trivedi, senior analyst at Reliance Securities, said, “The dollar slipped after Trump spoke against market expectations … This drop comes as he refrained from implementing aggressive tariffs following his inauguration.”
Trump called for an immediate drop in interest rates and provided no clarity on tariffs, while investors awaited a round of policy announcements from global central banks.
The lack of clarity about future policies has driven market participants to flock to safe-haven assets like gold to hedge against volatility.
Elsewhere, the Bank of Japan is widely expected to raise rates at the end of a two-day meeting on Friday. Rate decisions from the U.S. Federal Reserve and European Central Bank (ECB) are scheduled for next Wednesday and Thursday, respectively.
Traders see almost no chance of a Fed rate hike, according to the CME Group’s FedWatch Tool. Higher rates dampen the appeal of non-yielding bullion.
Trivedi said, “There is a possibility of gold hitting an all-time high next week … and the outlook remains positive.”
Spot silver was up 1.1% at $30.78 per ounce, palladium gained 0.6% to $997, and platinum rose 1% to $952.75.
All three metals were poised for weekly gains.
