Delhi, January 22, 2025 (Punjab Khabarnama Bureau): Gold prices surged to over a two-month high on Tuesday as the U.S. dollar weakened, while the yellow metal was also supported as investors flocked towards it amid uncertainty surrounding Donald Trump’s trade policies.
Spot gold climbed 0.6% to $2,722.83 per ounce by 0857 GMT, reaching its highest level since Nov. 6 and nearing the all-time high of $2,790.15 set in October.
The dollar index slipped 0.7%, holding close to a 2-week low hit in the previous session, making bullion more attractive for other currency holders.
U.S. gold futures were 0.5% lower at $2,734.20, narrowing the premium over spot rates, after U.S. President Donald Trump did not immediately impose tariffs on Monday as expected.
However, Trump suggested the U.S. could impose tariffs on Canada and Mexico in the near future.
The market is likely to benefit from the uncertainty of “Trump swings,” and gold could reach $3,000 per ounce by mid-year, said Julia Khandoshko, CEO at broker Mind Money
Bullion is considered a safe investment during economic and geopolitical uncertainty.
“The markets remain firmly in risk-off mode so I would expect any gold price dips to catch bids,” said StoneX analyst Rhona O’Connell.
Summary: Gold prices surged to a two-month high due to a declining US dollar, boosting investor interest in the precious metal as a safe-haven asset.