Gold prices moved closer to record highs during Friday's Asian session, following a pause on Thursday, as investors await clarity on U.S. President Donald Trump’s trade policies.
By 3:40 pm AEDT (4:40 am GMT) spot gold was up $19.72 or 0.7% to US$2,774.3 per ounce.
The precious metal remains buoyed by its safe-haven appeal, with concerns over Trump’s tariff and immigration policies casting a shadow on the global economic outlook. In his World Economic Forum (WEF) virtual address, President Trump advocated for a weaker U.S. Dollar and lower global interest rates, which pressured the Greenback and supported non-yielding assets like gold.
Earlier in the week, Trump announced plans to impose tariffs on imports from Canada, Mexico, China, and the European Union starting 1 February. However, the lack of further details has heightened investor caution, driving demand for the safe-haven metal.
Gold traders are now focused on the S&P Global preliminary Manufacturing and Services PMI reports for January, which could offer new insights into economic conditions in the U.S. and Europe.
Additionally, the Bank of Japan’s (BoJ) hawkish interest rate hike has weakened the U.S. dollar, providing further tailwinds for gold.
Despite the bullish outlook, gold prices could face some profit-taking on Friday as traders close positions ahead of next week’s U.S. Federal Reserve policy meeting and the release of fourth-quarter GDP data.
