Gold prices rise to near three-month high due to trade uncertainty and inflation concerns

From Investing.com: 2025-01-23 02:26:00

Gold prices continued to rise, almost reaching a three-month high, despite a slightly stronger USD. The uncertainty surrounding Trump’s policy plans has driven investors towards gold as a safe-haven asset. The Fed’s hawkish view on monetary policy and concerns about global trade have contributed to gold’s uptrend.

The euro weakened against the USD as investors await Trump’s tariff plans and potential inflation risks. The ECB is expected to announce a 25-basis-point rate cut next week, diverging from the Fed’s stance. The eurozone economy still faces challenges, with weak global demand and uncertainties affecting recovery.

The Japanese yen also lost ground against the USD due to the greenback’s strength and the BOJ’s loose monetary policy. USD/JPY experienced volatility ahead of the BOJ’s expected rate decision, with traders anticipating a 25-basis-point rate hike and closely monitoring the bank’s communication to determine the pair’s direction.



Read more at Investing.com: Gold Nears 3-Month High Amid Trade Uncertainty and Inflation Concerns