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Gold prices climbed in Asian trading on Friday, approaching record highs as a weakening U.S. dollar and President Donald Trump’s call for immediate interest rate cuts bolstered safe-haven demand.
Market Performance
- Spot Gold: Up 0.7% to $2,773.91 per ounce, near its record high of $2,790.41.
- Gold Futures (Feb): Gained 0.6%, trading at $2,781.39 per ounce.
Gold is set to rise nearly 3% this week, with support coming from Trump’s rate-cut advocacy and the slower-than-expected pace of U.S. tariffs.
Trump’s Rate-Cut Push Drives Demand
Speaking at the World Economic Forum, Trump urged global central banks to reduce interest rates and called on OPEC to lower oil prices.
- Impact on Gold: Lower interest rates enhance gold’s appeal as a non-yielding asset.
- Weaker Dollar: The U.S. Dollar Index fell 0.4% in Asian trading and is heading for its worst weekly performance in two months. A weaker dollar makes gold more affordable for buyers using other currencies.
Gold’s rise also reflects market unease, with Trump’s economic and tariff policies creating global uncertainty.
Other Precious Metals Gain
The weaker dollar supported gains in other metals:
- Platinum Futures: Rose 1.6% to $982.85 an ounce.
- Silver Futures: Climbed 1.6% to $31.348 an ounce.
Copper Rebounds on Dollar Weakness
Copper prices recovered after a subdued week, supported by the declining greenback:
- Benchmark Copper Futures (LME): Up 0.8% to $9,318.50 a ton.
- February Copper Futures: Jumped 1.3% to $4.3845 a pound.
While copper initially faced pressure from Trump’s tariff policies and expectations of a stronger dollar post-inauguration, the metal rebounded on renewed buying interest driven by the weaker dollar.
Gold’s trajectory remains tied to global uncertainty, dollar movements, and interest rate expectations. Meanwhile, industrial metals like copper could see further support if the dollar remains under pressure and global trade concerns ease.
