Jan 08, 2025 (MENAFN via COMTEX) --
(MENAFN - The Rio Times) Gold prices climbed on Monday, breaking a two-day losing streak. Investors sought the safe-haven asset amid uncertainties surrounding President-elect Donald Trump's tariff policies.
The February gold contract closed up 0.68% at $2,665.4 per troy ounce on the Comex division of the New York Mercantile Exchange. The market is assessing potential US tariff plans, according to FlowCommunity.
The dollar's recent loss of momentum has contributed to the precious metal's rise. Gold finds support from factors beyond American politics, including geopolitical tensions and robust central bank demand.
Trump's approach to ongoing conflicts adds to the uncertainty. He warned that "hell will break loose in the Middle East" if a hostage deal with Hamas isn't reached before his inauguration in about two weeks.
The People's Bank of China increased its gold reserves by approximately 10 tons in December, as reported by Commerzbank on Monday. However, Bannockburn Global Forex noted that this announcement had little impact on the market.
Geopolitical tensions and central bank purchases continue to bolster gold prices . The metal's appeal as a safe-haven asset grows during times of economic and political uncertainty. Investors often turn to gold to hedge against potential market volatility.
As Trump's inauguration approaches, market participants remain cautious. They await clarity on his administration's economic policies, particularly regarding international trade.
The incoming president's stance on tariffs could significantly impact global markets and currency valuations. Gold's performance in the coming weeks may hinge on these policy developments.
Investors will closely monitor Trump's statements and actions for indications of his economic agenda. The precious metal's price could see further fluctuations as markets adjust to the new administration's policies.
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COMTEX_461670554/2604/2025-01-08T08:47:07
