Factors affecting gold prices:
Trade policies: President Trump indicated the possibility of imposing 25% tariffs on imports from Canada and Mexico starting February 1. This trend raised investors’ fears of escalating trade tensions, which prompted them to resort to gold as a safe haven.
REUTERS
Strength of the US dollar: The dollar declined today after Trump announced the postponement of the imposition of tariffs, which made gold more attractive to investors.
THE TIMES
Inflation and monetary policies: Markets are awaiting US inflation data, as it is expected to affect the Federal Reserve’s decisions on interest rates. Rising inflation may support gold prices as a means of hedging.
REUTERS
Forecast:
According to analysts’ expectations, gold may continue to rise to levels exceeding $3,000 per ounce by the end of 2025, driven by trade policies and geopolitical tensions.
BARRON’S
Advice for investors:
It is advisable to closely monitor political and economic developments, especially regarding the policies of the new US administration and the decisions of the Federal Reserve. The current volatility may provide investment opportunities, but caution is required given the prevailing uncertainty in the markets.