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Gold held near the highest since October as traders weighed President Donald Trump’s latest tariff threat against Europe, along with his vow to push for more interest-rate cuts.
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Bloomberg News
Sybilla Gross
Published Jan 23, 2025 • 1 minute read
(Bloomberg) — Gold held near the highest since October as traders weighed President Donald Trump’s latest tariff threat against Europe, along with his vow to push for more interest-rate cuts.
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Bullion was trading near $2,754 an ounce and was on track for a weekly advance of about 2%, supported by haven demand amid uncertainty over the global economic outlook under the new US administration.
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Trump told attendees at the World Economic Forum in Davos via video that he intends to hit Europe with import levies in a bid to bring manufacturing back to the US. Since being sworn in on Monday, the president has identified China, the EU, Canada and Mexico as potential targets for import levies, raising concerns about how other governments might respond that have underscored bullion’s appeal as a haven asset.
The president also said he would demand an immediate drop in US interest rates. While lower borrowing costs are typically bullish for precious metals, traders were cautious as monetary policy is set by the Federal Reserve alone. The central bank is due to make a rates decision next week.
Gold set a series of records last year, with gains driven by the Fed’s pivot to cutting interest rates, geopolitical tensions and central-bank buying. Traders are now also focusing on Trump’s domestic agenda, including his pledges to cut taxes and overhaul immigration. Such moves may erode the nation’s finances and reignite inflation, potentially complicating the Fed’s rate-cutting path.
Spot gold was steady for a second day at $2,755.35 an ounce at 8:04 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium were little changed, while platinum edged up.
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