Jan 08, 2025 (MENAFN via COMTEX) --
(MENAFN - Yolo Wire) The price of %Gold is marching higher following wide-ranging comments from U.S. president-elect Donald Trump that have prompted concerns about geopolitical instability.
In an hour-long appearance before the media on Jan. 7, Trump mused about everything from using military force to take control of Greenland and the Panama Canal, to annexing Canada through “economic force” and banning wind turbines that produce clean energy.
Trump also doubled down on his threats to impose tariffs of 25% or more on many of America’s closest allies, prompting worries about impending trade wars and resurgent inflation.
Consequently, the price of gold is up 0.51% and trading at $2,679 U.S. per ounce. Gold is viewed as a safe haven asset and its price tends to rise during periods of volatility.
Analysts say gold’s price is likely to rise further as Trump takes office, inflation proves sticky, and concerns grow about a slowing U.S. economy.
Trump is to be sworn in as U.S. president on Jan. 20. His proposed tariffs and protectionist policies are expected to be inflationary and could spark a global trade war, notably with China.
This could ratchet up gold’s appeal as a safe haven asset and hedge against inflation.
Following three interest rate cuts in 2024, the U.S. Federal Reserve in December forecasted only two rate reductions this year.
Currently, markets anticipate only two interest rate cuts of 25-basis points each from the U.S. central bank in 2025.
MENAFN08012025007606016353ID1109069068
COMTEX_461693896/2604/2025-01-08T23:51:30
