MUMBAI, 23 Jan (Commoditiescontrol): Gold prices remained largely unchanged on Thursday as investors awaited further direction on U.S. policy decisions under President Donald Trump’s administration.
Spot gold dipped slightly by 0.1% to $2,753.14 per ounce, trading within a narrow $8 range. On Wednesday, prices reached their highest levels since October 31. Meanwhile, U.S. gold futures fell 0.4% to $2,760.40 per ounce.
Analysts suggest that gold could edge closer to the critical $3,000 mark if Trump’s proposed policies fuel demand for inflation hedges and safe-haven assets. Among these policies are proposed tariffs of 25% on Canada and Mexico and 10% on China, set to take effect on February 1. Trump also hinted at potential tariffs on European imports, though specifics were not disclosed.
Gold often benefits during periods of economic or geopolitical uncertainty, as it is considered a secure investment. However, rising interest rates can diminish gold’s appeal, as it does not yield any interest.
The Federal Reserve’s upcoming meeting on January 28-29 is expected to bring more clarity to the economic outlook. While steady economic growth and declining inflation are anticipated, uncertainty surrounding Trump’s policies may influence discussions. According to the CME Group’s FedWatch Tool, traders see a 96% likelihood that the central bank will leave benchmark interest rates unchanged.
Global market attention will also be on the Bank of Japan’s rate decision scheduled for Friday and the European Central Bank’s announcement next week.
In other precious metals, spot silver fell by 0.7% to $30.59 per ounce, while platinum edged down 0.1% to $945.35. Palladium bucked the trend, gaining 1% to reach $987.30 per ounce.
As markets navigate policy uncertainties and interest rate decisions, gold’s performance will remain closely tied to global economic developments and investor sentiment.
(By Commoditiescontrol Bureau; +91 98201 30172)
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