BENGALURU- Gold prices climbed to a fresh 11-week peak on Wednesday, boosted by safe haven demand amid uncertainty surrounding US President Donald Trump’s trade policies and a softer dollar.
Spot gold added 0.1 percent to $2,748.18 per ounce, after hitting its highest since Nov. 5, 2024 earlier in the session. US gold futures gained 0.1 percent to $2,762.90.
“There is still some uncertainty regarding when Trump wants to implement his policies on major trading partners of the US causing a lot of uncertainty in direction of dollar, which is the primary short-term catalyst driving bullish tone in gold price,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
Trump held back from imposing trade barriers on his first day in office on Monday, pushing the dollar lower.
A weaker dollar makes gold more attractive for foreign buyers. Gold is considered a safe investment during economic and geopolitical uncertainty.
Trump vowed to hit the European Union with tariffs and said his administration was discussing a 10 percent tariff on goods imported from China starting Feb. 1.
