Gold prices rose globally to their highest level in nearly 3 months, and are heading for gains for the fourth consecutive week, supported by the uncertainty surrounding US President Donald Trump’s plans for tariffs and his calls for lower interest rates, which is pressuring the dollar.
The precious metal rose in spot transactions to $2,777.10 an ounce, rising more than 2% during the past week, its highest level since October 31, when it reached $2,790.15.
The dollar fell more than 1% over the past week, heading for its worst weekly decline in two months, making gold cheaper for holders of other currencies.
“The dollar fell after Trump’s comments defied market expectations, and this decline comes after he refrained from implementing high tariffs after his inauguration,” said Jigar Trivedi, senior analyst at Reliance Securities.
Trump has called for an immediate interest rate cut and has not made clear his plans on tariffs, and uncertainty about his future policies has prompted investors in the market to flock to safe assets such as gold to hedge against volatility.
Meanwhile, the Bank of Japan raised interest rates to their highest levels since the global financial crisis in 2008.
The US Federal Reserve and the European Central Bank are scheduled to announce their interest rate decisions next week.
“Gold remains in an uptrend, which means we are still on track to hit $3,000 this year,” said Kyle Rodda, a financial markets analyst at Capital.com.
