Gold prices have risen to the highest level ever today, Friday, and tend to record the best monthly performance since last March, amid investors’ demand for safe haven in light of the increasing fears of customs duties that may be imposed by US President Donald Trump.
This comes in conjunction with the anticipation of an important report on inflation to clarify the course of the monetary policy of the Federal Reserve (US Central Bank).
Gold in instant transactions increased 0.2% to $ 2798.96 an ounce in morning transactions, up by more than 6% this month.
Prices reached their highest level at $ 2800.99 earlier.
Gold futures rose 0.1% to $ 2826.50 an ounce.
The transactions were weak due to the closure of the Chinese market on the occasion of the New Lunar New Year.
Trump and customs fees
On Thursday, Trump said that the United States will impose customs duties by 25% on imports from Mexico and Canada, repeating his warning to the two countries, and threatened to impose definitions on China without determining the level.
The precious metal, which is heading to achieve its gains for the fifth consecutive week, has benefited from the demand for safe haven, as Trump’s customs threats sparked fears of commercial wars that may drain economic growth. There are also fears that Trump’s pledges to reduce taxes and migration repair may lead to US financial resources and re -inflation.
The Federal Reserve Chief Jerome Powell said on Wednesday that the US Central is in a “waiting and anticipation” position regarding the potential impact of the policies of the new administration.
The Federal Open Market Committee has left interest rates without changing this week as expected – after it was reduced in each of the previous three meetings since last September – and indicated that the progressing progress towards low inflation requires a patient approach.
“The threat of imposing customs duties has led to feeding the flows on safe haven … and any surprise to land in inflation data may indicate greater flexibility than the Federal Reserve on monetary policy, and may speed up expectations by lowering prices Benefit and provide more support for gold. “
Investors are currently awaiting the Personal Consumer spending report in the United States for December, to be issued today, Friday, in search of any indicators on the course of interest rates.
Gold is a hedge tool for price pressures and in times of geopolitical turmoil, and its prices rise in low interest conditions.
Other minerals
As for other precious metals:
- Silver in instant transactions fell 0.7% to $ 31.46 an ounce.
- Platinum increased 0.3% to $ 969.10.
- Palladium fell 0.2% to 986.75 dollars.
Silver and platinums tend to make weekly gains.
