On Thursday, the price of spot gold rose 0.1% to $2753.19 per ounce, leaving a difference of $26.72 from the record high of $2790.15 set in October 2023. Although gold prices briefly reached a more than three-month high on Wednesday, Thursday's trend was significantly influenced by fluctuations in the US dollar, with investors expressing strong concern about the uncertainty of US President Trump's policies. US gold futures closed down 0.2%, at $2765 per ounce.
RJOFutures senior market strategist Daniel Pavilonis stated: "Part of the reason for gold's rise is due to the fluctuations in the dollar. The dollar strengthened early in the session but was later sold off, driving gold prices away from the lows. The market is watching the direction of White House policies, and today's gold price movement reflects this change in expectations."
Trump reiterated his commitment to reversing inflation at the World Economic Forum in Davos, Switzerland, calling for immediate interest rate cuts by the US and other countries to address the challenges posed by the global economic slowdown. Trump's remarks have somewhat exacerbated market uncertainty, prompting investors to pour funds into safe-haven assets like gold to hedge against policy and market volatility risks.
Despite Trump's strong call for rate cuts, data from the CME FedWatch Tool shows that traders believe there is a 99.5% chance the Federal Reserve will keep rates unchanged at its meeting on January 28-29. This data indicates a low expectation of short-term policy adjustments, but uncertainty remains for the future.
In other precious metals, spot silver fell 1.1% to $30.45 per ounce; platinum prices fell 0.2% to $943.84; while palladium defied the trend, rising 1.3% to $990.31. The divergent performance of the precious metals market further reflects the current complex mindset of investors.
Analysts point out that while the short-term volatility in gold prices is influenced by the dollar's movements and policy expectations, in the long run, the uncertainty of Trump's policies may continue to drive safe-haven demand. Especially in the context of concerns about inflation and the slowdown in global economic growth, gold remains an important choice for investors to hedge risks. The future trend of the precious metals market will depend on the Federal Reserve's interest rate decisions and the specific implementation of Trump's policies.
