Gold prices rose another 0.6%, continuing their recent rally and approaching their highest level since October 31, when they reached an all-time high of $2,790.15.
The precious metal was given a boost by yesterday's statements by US President Donald Trump, the lack of clarity regarding tariffs and the fall of the US currency.
Trump called for an immediate reduction in interest rates around the world, but did not provide clues about his tariff policy, which increased investor demand for gold, which is seen as a safe investment amid economic and geopolitical turmoil. These statements were made just a few days before the first meeting of the Fed, which will be held under his administration, while experts expect officials to leave rates unchanged. According to the CME FedWatch Tool, markets see a 0.5% probability of a 0.25% rate cut in January (compared to 2.1% a week ago).
Meanwhile, the US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.62% to 107.47 (the lowest value since December 17). The index is preparing to record its worst weekly fall in two months, making bullion less expensive for foreign buyers.