By Anjana Anil
(Reuters) – Gold prices climbed over 1% on Friday, closing in on its all-time-high hit in October, as a weakening dollar on U.S. President Donald Trump’s push for lower rates and tariff uncertainty drove the metal towards its fourth straight weekly rise.
Spot gold was up 0.7% at $2,772.79 per ounce by 01:42 p.m. ET (1842 GMT). The prices, which have added 2.7% so far this week, are a mere $17.3 away from the record high of $2,790.15 hit on Oct. 31.
U.S. gold futures settled 0.5% up at $2,778.90 per ounce.
“One factor certainly seems to be the drop in the U.S. dollar… some of the biggest factors that are driving it are associated with (President Trump) talking tariffs,” said Bart Melek, head of commodity strategies at TD Securities. [US/]
“(Trump) is at risk of elevating prices and I think the gold market perceives perhaps a higher inflation and possibly a central bank that’s more accommodative.”
In this climate of uncertainty, zero-yield gold continued to shine as a reliable hedge against inflation and instability, while it remains particularly appealing in a low-interest-rate environment.
At the World Economic Forum on Thursday, Trump called for an immediate reduction in interest rates. The dollar hit an over one-month low, making bullion less expensive for foreign buyers. [USD/]
“Focus has now shifted to Feb. 1 in terms of tariff or trade policy announcements, with less focus on the Jan. 29 Fed meeting,” Standard Chartered said in a note.
Trump has said tariffs on Mexico, Canada, China and the European Union could be announced on Feb. 1.
A short-covering rally has boosted spot prices, but ETF flows remain choppy ahead of the Fed meeting, the bank noted.
Traders expect the Fed to leave rates unchanged at next week’s meeting.
Spot silver was up 0.8% at $30.67 per ounce and platinum rose 0.6% to $948. Palladium gained 0.1% to $992.75, hitting its highest since November 25.
All were poised for weekly gains.
(Reporting by Anjana Anil in Bengaluru; additional reporting by Ashitha Shivaprasad; Editing by Shailesh Kuber)
