Egypt Daily News – Gold prices touched the highest level in almost three months today, Friday, and are heading for gains for the fourth week in a row, supported by the surrounding uncertainty US President Donald Trump’s plans for customs duties and his calls to reduce interest rates, which is putting pressure on the dollar.
Gold in instant transactions rose 0.7% to $2,773.57 per ounce, and has increased more than 2% so far this week. Earlier today, prices rose to $2,777.10, their highest level since October 31, when they reached $2,790.15. US gold futures increased 0.6% to $2,781.
The dollar fell more than 1% 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 an immediate cut in 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.
Meanwhile, 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.
“The trend of gold remains towards climb, and this means that we are still on the track to reach the level of $ 3,000 this year,” said Kyle Roda, a financial market analyst at Capital.com.
