2025-01-29T04:54:48+00:00
The gold market has experienced slight fluctuations as of early Wednesday trading, influenced by uncertainties surrounding U.S. customs duties that have rekindled interest in gold as a safe-haven asset. Market attention is predominantly directed towards the Federal Reserve’s upcoming meeting set to conclude later today.
As of 0108 GMT, the spot price of gold was recorded at $2,765.35 per ounce, while U.S. gold futures advanced by 0.2% to $2,772.10.
In the previous session, gold prices suffered a decline of over one percent—the steepest drop since December 18—following the launch of a cost-effective AI-supported Chinese application, which contributed to a robust sell-off in global stock markets, increasing the risk appetite across other asset categories.
In a statement made on Monday, U.S. President Donald Trump announced the imposition of tariffs on aluminum, copper, and steel, potentially impacting various market sectors.
Gold often serves as a refuge during periods of economic uncertainty and trade conflicts. Furthermore, the inflationary implications of Trump’s policies may lead the Federal Reserve to maintain elevated interest rates for an extended period, diminishing the appeal of gold as an inflation hedge.
Investor sentiment is currently fixated on the Federal Reserve’s inaugural policy meeting of the year, especially as Chinese markets remain closed for the Lunar New Year celebrations.
The Federal Reserve commenced its two-day meeting yesterday, and it is anticipated that interest rates will remain unchanged following a cumulative decrease of 100 basis points from September to December.
In terms of other precious metals, silver fell by 0.1% to settle at $30.43 per ounce, palladium decreased by 0.3% to $952, and platinum experienced a reduction of 0.2% to $940.10.