Gold prices hit their highest level since October on Friday, heading for a fourth straight week of gains, driven by US President Donald Trump’s calls for interest rate cuts and uncertainty surrounding his trade policies.
Spot gold rose 0.7 percent to $2,774.19 an ounce, as of 0854 GMT. Prices are at their highest since October 31, when they hit a record high of $2,790.15.
U.S. gold futures for February delivery rose 0.6 percent to $2,781.40 an ounce. The dollar hit a one-month low, making bullion less expensive for foreign buyers.
Independent analyst Ross Norman said gold’s move towards an all-time high coincided with a correction in the dollar, which fell after Trump comments suggesting it could ease tariffs and settle on a trade deal with China. We see that gold is likely to reach $3175 during 2025
Trump said Thursday at the World Economic Forum that he would demand an immediate rate cut. In an interview with Fox News, Trump said he would prefer not to have to use tariffs on China.
Investors consider zero-yield gold a hedge amid political and economic turmoil, and it tends to perform well in a low interest rate environment.
Trump made his comments ahead of next week’s Fed meeting, where policymakers widely expect to leave interest rates unchanged.
Spot silver rose 1.4 percent at $30.87 an ounce, palladium rose 0.8 percent to $999.09 and platinum 1 percent to $952.29.
Gold prices rise towards a historic high
Gold prices rose sharply on Friday, pushing towards an all-time high of $2,790.17, as traders assessed the metal’s bullish momentum. The focus remains on whether gold is able to maintain the breakout above this critical level or face a short-term correction.
A strong breakout will depend on strong buying volume, while a low-volume move, driven by short positions or a buy stop, may trigger profit-taking providing potential buying opportunities for bulls. The gold/USD pair is trading at $2,778.78, up $23.92 or +0.87%. I think we’ll end up reaching the $3,000 level by the time it’s done.
Gold looks for fourth weekly gain on dollar weakness and Trump’s comments
Spot gold rose steadily this week, hitting its highest level since October. If prices hold, it will be the fourth consecutive weekly gain for the precious metal. The rally was boosted by U.S. President Donald Trump’s recent calls for interest rate cuts and his proposal for a softer stance on tariffs on China, which pressured the U.S. dollar to a one-month low. Gold usually takes advantage of a weaker dollar by making it more expensive for foreign buyers. But at the same time, we also have to think about the geopolitics of the world, which remains a very chaotic proposition.
Gold’s strength also reflects broader concerns about global economic uncertainty and inflationary pressures, with zero-yield bullion remaining a preferred hedge in periods of market volatility. Trump made remarks at the World Economic Forum in Davos, calling for an immediate rate cut. His comments fueled speculation ahead of next week’s Fed meeting, though policymakers are expected to keep interest rates unchanged.
Treasury yields fall amid inflation concerns
U.S. Treasury yields fell on Friday as traders digested Trump’s comments and awaited the next economic data, including the S&P composite Global PMI and existing home sales. BlackRock CEO Larry Fink noted that Trump’s fiscal policies could lead to “new inflationary pressures,” which could lead to higher interest rates. Fink predicted a yield on 10-year Treasuries of 5.5% if inflation accelerates, which could challenge equity markets while indirectly supporting gold.
Gold seems poised for further gains in the short term, with its bullish momentum supported by a weaker dollar, dovish interest rate sentiment, and ongoing economic uncertainty.
Traders should watch for potential corrections if the $2,790 level tests on lower volume. However, the broader outlook remains bullish, and the breakout will likely spill into uncharted territory if strong buying interest supports it.
Weekly Technical Analysis of Gold Markets
The gold market rose during the week, as we started Friday’s session at all-time highs, essentially. So, with that in mind, if we manage to break above the $2,800 level, and I think that’s the next target here, the market is continuing its overall uptrend over the long term. There are a lot of concerns about tariffs around the world, so of course this is a major factor in people’s search for safety. But at the same time, we also have to think about the geopolitics of the world, which remains a very chaotic proposition.
Short-term pullbacks are sure to cause a lot of buyers to flock to and take advantage of the markets, and the $2,700 level is likely to be a key support level. If we manage to break through the $2,800 level, I think we’ll end up reaching the $3,000 level by the time the order is done.
