By The Rio Times | Created at 2025-01-08 22:38:06 | Updated at 2025-01-09 18:38:57
20 hours ago
Gold prices climbed for the second consecutive session, reflecting new evidence of a restrictive tariff policy from President-elect Donald Trump.
Analysts noted that indications of more aggressive interest rate cuts by the Federal Reserve (Fed) also fueled this upward trend. February gold futures rose by 0.26%, reaching $2,672.40 per troy ounce on the Comex.
The Comex is part of the New York Mercantile Exchange (Nymex). According to Pepperstone, the precious metal gained due to improved expectations for U.S. monetary easing, despite a strong dollar.
Christopher Waller, a Fed official, stated that opinions vary significantly among Federal Open Market Committee (FOMC) members regarding potential interest rate cuts.
The CME Group’s monitoring tool showed increased bets for 25 and 50 basis point cuts in 2025. Pepperstone attributed gold’s rise to geopolitical tensions, concerns over strict U.S. tariffs, and central bank purchases.
Gold Prices Rise Amid U.S. Economic Policy Signals. (Photo Internet reproduction)However, Commerzbank argued that China’s central bank purchases did not significantly impact gold trading. CNN reports indicate that Trump may consider declaring a national economic emergency.
This action would serve to justify a comprehensive tariff package aimed at both allies and adversaries. The dynamics surrounding gold remain complex, influenced by the strength of the dollar, inflationary pressures, and Fed policy expectations.
Additionally, growing geopolitical uncertainty further impacts its behavior. This intricate interplay will likely shape the future trajectory of gold prices.
