Gold climbs to record as traders weigh threat from tariffs
31 Jan 2025, 08:55 amUpdated - 10:15 pm
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Bullion topped US$2,800 (RM12,285) for the first time on Friday with spot gold adding 0.4% to US$2,804.86 an ounce as of 1.14pm in London.

(Jan 31): Gold hit a record high, with investors flocking to safe havens after US President Donald Trump reiterated threats to impose tariffs on Mexico and Canada.

Bullion topped US$2,800 (RM12,285) for the first time on Friday. The surge came after Trump said he would follow through on imposing 25% levies on imports from Canada and Mexico on Feb 1. He also threatened China with measures, without specifying a level.

The precious metal, on track for its fifth consecutive weekly gain, has benefitted from haven demand as Trump’s tariff threats spur fears of trade wars that could sap economic growth. There are also worries that his pledges to cut taxes and overhaul immigration may erode US finances and reignite inflation. Federal Reserve chair Jerome Powell said on Wednesday that the US central bank was in “wait-and-see” mode with regard to the potential impact of the new administration’s policies. 

The Federal Open Market Committee left interest rates unchanged this week as expected — after cuts at each of the three previous meetings since September — and indicated that stalled progress towards lower inflation warranted a patient approach.

Traders now will be focused on the Fed’s favoured inflation gauge, the personal consumption expenditures index — due later on Friday. It’s expected to show a slight acceleration in price hikes, according to the median forecast of economists surveyed by Bloomberg.

Spot gold added 0.4% to US$2,804.86 an ounce as of 1.14pm in London. The Bloomberg Dollar Spot Index added 0.1%. Platinum rose, while silver and palladium were little changed. 

Uploaded by Felyx Teoh

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