Gold jumps to its highest level in 11 weeks amid dollar weakness

Gold prices rose to their highest level in 11 weeks today, supported by the weakness of the dollar and with increased demand for safe havens due to uncertainty surrounding US President Donald Trump’s trade policies.

Gold rose in instant transactions 0.1 percent to $2,748.58 per ounce, by 01:05 GMT, after recording the highest level since November 5 earlier in the session.

US gold futures rose 0.1 percent to $2,763.40.

Trump refrained from imposing tariffs on his first day in office, which pushed the dollar lower.

The weak dollar makes gold more attractive to foreign buyers.
Gold is considered a safe investment during economic and geopolitical uncertainty.

Imposing customs duties

Trump pledged to impose tariffs on the European Union, and said that his administration is discussing imposing 10 percent tariffs on goods imported from China on February 1.

Gold’s appeal as an inflation hedge may diminish if Trump’s policies, seen as fueling inflation, prompt the Federal Reserve to keep interest rates high for longer.

High interest rates weaken the attractiveness of gold, which does not generate a return.

In terms of other precious currencies, the price of silver stabilized in spot transactions at $30.85 per ounce, the price of palladium increased 0.1 percent to $958.11, and the price of platinum stabilized at $944.05.