Gold is at a 3-month high

Gold prices touched the highest level in almost three months today, and are heading for gains for the fourth week in a row, supported by the uncertainty surrounding US President Donald Trump’s plans for customs duties and his calls to reduce interest rates, which is putting pressure on the dollar.

By 0505 GMT, spot gold rose 0.7 percent to $2,773.57 an ounce, and has increased more than two percent so far this week.

Earlier in the day, prices rose to $2,777.10, their highest level since October 31, when they reached $2,790.15.

US gold futures increased 0.6 percent to $2,781.

The dollar fell more than 1 percent during the week, heading for its worst weekly decline in two months, making gold less expensive for holders of other currencies.

Jigar Trivedi, a senior analyst at Reliance Securities, said, “The dollar fell after Trump’s statements contradicted market expectations. This decline comes after he refrained from implementing high customs duties after his inauguration.”

Trump called for immediately lowering interest rates and did not clarify his plans regarding tariffs. The uncertainty about his future policies prompted market investors to turn to safe assets such as gold to hedge against fluctuations.

At the same time, the Bank of Japan raised interest rates to their highest levels since the global financial crisis in 2008. The US Federal Reserve and the European Central Bank are scheduled to announce their interest rate decisions next week.

“Gold’s trend remains bullish, which means we are still on track to reach the $3,000 level this year,” said Kyle Rodda, financial markets analyst at Capital.com.

As for other precious metals, silver in spot transactions increased 1.1 percent to $30.78 per ounce. Palladium gained 0.9 percent to $1,000.85, and platinum rose 1 percent to 952.10. dollar.