Gold Prices Rise to 11-Week High on Safe-Haven Demand Amid Trade Fears
Gold prices hit an 11-week high on Wednesday, continuing their third straight day of gains, as traders sought safe-haven assets amidst growing concerns over US tariffs and trade tensions under President Donald Trump’s administration.
The precious metal rose 0.2% to $2,749.29 per ounce, its highest level since early November, and February gold was up 0.2% to $2,766.57 an ounce. The rise in gold prices comes as markets remain cautious due to uncertainty over Trump’s policies, which are expected to drive inflation.
Gold, traditionally a safe-haven asset, has maintained its price above a one-month peak roughly since last week, reflecting ongoing concerns over global uncertainty. President Trump’s plan to impose tariffs on Chinese and European Union imports has further solidified the trend, as higher tariffs could result in reduced trade imbalances and higher inflation, both of which are seen as dollar-positive.
A stronger dollar typically drives gold prices lower, but the continued uncertainty has helped gold maintain its value. Trump’s decision not to provide further details on his tariff plans earlier this week fueled the rise, as did news that he may impose 10% tariffs on Chinese imports and hit the EU with tariffs from February 1.
Other precious metals were also affected, with silver and palladium remaining stable, while platinum fell 0.1% to $967.50 per ounce. Copper prices, often seen as an indicator of market sentiment, continue to decline in the face of tariff fears and a stronger dollar, falling 0.9% to $4.30 per pound on the London Metal Exchange.
