Gold prices rise as US dollar weakens post-Trump inauguration, potential volatility and inflation factors

From Investing.com: 2025-01-21 02:05:00

Gold prices rose by 0.24% as the US dollar weakened following Trump’s inauguration. Trump’s policies may increase market volatility, supporting safe-haven assets like gold. However, his trade tariffs and immigration policy might stimulate inflation, keeping rates higher and reducing gold’s appeal. XAU/USD could break resistance at $2,728 and rise further.

The euro surged by 1.39% against the USD after Trump didn’t announce immediate trade tariffs. This relief rally boosted currencies of US trade partners, including the eurozone. EUR/USD had been falling but rebounded. Key levels to watch are resistance at 1.04470 and support at 1.03550.

The Canadian dollar gained 1.22% against the USD after Trump didn’t impose immediate trade tariffs. However, risks remain as Trump considers tariffs on imports from Canada and Mexico. USD/CAD almost recovered all losses from the previous day. Key levels to watch are resistance at 1.45410 and support at 1.43600.



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