Gold exceeds $4,700 for the first time as Trump’s threats escalate #Urgent
Gold prices exceeded the level of $4,700 per ounce for the first time, during Tuesday’s trading, while silver traded near its highest historical levels.
This came in light of investors’ demand for Safe havens after US President Donald Trump’s threats to impose additional tariffs on European allies negatively affected the morale of global markets.
The price of Goldin spot transactions rose 0.7% to $4,699.93 per ounce by 05:14 GMT, after touching a record level of $4,701.23 earlier in the session.
US gold futures for February delivery rose 2.4% to $4,706.50 per ounce.
On the other hand, silver fell in Spot trading rose 0.4% to $94.27 an ounce, after hitting a record high of $94.72 earlier in the session.
Trump escalated his moves to seize sovereignty over the island of Greenland from Denmark, a NATO member, prompting the European Union to consider taking countermeasures.
Trump’s approach, said Tim Waterer, chief market analyst at KCM Trade. "Confusing" In international politics and his desire to lower interest rates greatly benefit precious metals, which is reflected in the strong rises witnessed by gold and silver." target="_blank">Gold prices have increased by more than 70% since the start of Trump’s second term a year ago.
Gold received additional support as concerns continue about the independence of the Federal Reserve, with expectations that the US Supreme Court will consider this week a case related to Trump’s attempt to fire Federal Reserve Governor Lisa Cook.
The Federal Reserve is widely expected to keep interest rates unchanged during its meeting scheduled for January 27 and 28, despite Trump’s calls to lower them. Gold, which does not generate a return, is known for its good performance in low interest environments.
Kelvin Wong, chief market analyst at OANDA, believes that the US central bank will continue the cycle of rate cuts until 2026, in light of the slowdown in the labor market and weak consumer confidence, expecting the next cut to be currently priced in the markets during the months of June or July.
With regard to other precious metals, platinum declined in spot transactions. By 0.8% to $2,355.60 per ounce, while palladium fell by 0.7% to $1,828.58.
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