Gold prices surged to their highest level in more than two weeks on Thursday, driven by safe-haven buying as traders adjusted positions ahead of key U.S. economic data and the potential impact of President-elect Donald Trump’s proposed trade tariffs.
Spot gold climbed 1.2% to $2,654.24 per ounce by 02:57 p.m. EST (1957 GMT), reaching its peak since December 16. U.S. gold futures also saw gains, settling 1.1% higher at $2,669.
“I can’t see anything market-moving in the news, but geopolitical forces—international tensions and financial uncertainties, especially ahead of Trump’s inauguration—are supporting prices,” said Rhona O’Connell, an analyst at StoneX, in an email.
Gold typically thrives in low-interest-rate environments and serves as a hedge against economic and geopolitical risks. Recent geopolitical tensions, including Russia’s drone strike on Kyiv and Israeli military actions in Gaza, have added to the metal’s appeal.
Traders are also eyeing next week’s U.S. economic reports, including job openings, the ADP employment report, and minutes from the Federal Reserve’s December meeting, which could provide further insight into the central bank’s interest-rate outlook for 2025.
In 2024, gold saw a record high, driven by rate cuts, central-bank buying, and ongoing geopolitical tensions. The yellow metal posted its largest annual gain since 2010, rising more than 27%.
Fawad Razaqzada, a market analyst at Forex.com, suggested that any early-year corrections or consolidations could pave the way for a renewed rally, with a gold price target of $3,000 per ounce considered feasible.
“The unwinding of the ‘Trump trade’—a phenomenon marked by a strong U.S. dollar and rising equity markets—could weaken the dollar and push gold prices higher,” Razaqzada added.
With Trump’s inauguration set for January 20, market uncertainty remains high. His proposed tariffs and protectionist policies are expected to exert inflationary pressure and could potentially trigger trade wars.
In other metals, spot silver rose 1.9% to $29.43 per ounce, while palladium remained unchanged at $910.64, and platinum climbed 1.9% to $920.72.
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