Mumbai, 25 Jan (Commoditiescontrol): Gold prices rose more than 1% on Friday, nearing their all-time high set in October, as a weaker dollar and expectations for lower interest rates bolstered the precious metal's appeal. The market also gained support from growing uncertainty over potential new tariffs.
Spot gold climbed 0.7% to $2,772.79 per ounce, marking a weekly gain of 2.7%. The price is now just $17.36 short of the record high of $2,790.15 reached on October 31. Meanwhile, U.S. gold futures closed 0.5% higher at $2,778.90 per ounce.
In an environment marked by economic uncertainty, zero-yield gold continues to stand out as a safe haven against inflation and instability. Its attractiveness is amplified by the current low-interest-rate scenario, providing steady demand for the metal.
At the World Economic Forum on Thursday, U.S. President Donald Trump reiterated his call for an immediate reduction in interest rates. The dollar dropped to a one-month low, making gold more affordable for foreign buyers and boosting its price. Adding to market jitters, Trump suggested that tariffs on major trade partners, including Mexico, Canada, China, and the European Union, could be announced as early as February 1.
Market activity also saw a short-covering rally, further lifting spot prices. However, exchange-traded fund (ETF) flows have been uneven ahead of the Federal Reserve's meeting next week. Traders largely anticipate that the Fed will maintain its current interest rate levels.
Other precious metals also benefited from the weaker dollar. Spot silver rose 0.8% to $30.67 per ounce, while platinum gained 0.6% to reach $948. Palladium edged up 0.1% to $992.75, hitting its highest level since November 25.
With gold inching closer to record highs, the market remains focused on upcoming Federal Reserve decisions, tariff developments, and global economic conditions that could influence its trajectory further.
(By Commoditiescontrol Bureau: 09820130172)
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