Gold Prices Decline Amid Trade Uncertainty
On Friday morning, during Asian trading hours, gold prices experienced a modest decline. However, the yellow metal is projected to close the week with gains, driven largely by heightened demand stemming from uncertainty over U.S. trade policies under President Donald Trump.
Current Market Trends
| Metal | Price (USD/ounce) | Change (%) |
|---|---|---|
| Gold (Spot) | 2,900.48 | -0.3% |
| Gold (Futures) | 2,908.70 | -0.6% |
| Silver | 32.60 | 0.0% |
| Platinum | 965.23 | 0.0% |
| Palladium | 939.25 | -0.3% |
Gold in spot transactions saw a slight decrease of 0.3% to $2,900.48 an ounce as of 0017 GMT; however, it has appreciated by 1.6% since the start of the week. Similarly, U.S. gold futures have dropped 0.6% to $2,908.70.
Impact of Trade Policies
The recent commentary from President Trump on the imposition of 25% tariffs on a variety of imports from Canada and Mexico has further complicated the trade landscape. This ongoing trade volatility continues to disturb financial markets, raising concerns about inflationary pressures and economic slowdown.
Christopher Wald, an official with the Federal Reserve, indicated that the Central Bank is leaning against a rate cut at its upcoming policy meeting, although he anticipates possible reductions later in the year should inflationary pressures persist in their decline.
Gold as a Hedge
In times of political instability and rising inflation, gold is traditionally viewed as a safe-haven asset. However, sustained high interest rates diminish the appeal of non-yielding assets like gold.
Upcoming Economic Indicators
Investors are closely monitoring the forthcoming non-farm payroll report, set to be released at 1330 GMT, with expectations of a 160,000 job increase for the month of February according to a recent survey.
