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Picture: 123RF
Picture: 123RF

Bengaluru — Gold prices touched near three-month highs on Friday and were set to post a fourth consecutive weekly gain, buoyed by uncertainty about US President Donald Trump’s tariff plans and his calls to lower interest rates weighing on the dollar.

Spot gold jumped 0.7% to $2,773.57/oz by 5.05am GMT, and has gained more than 2% so far this week. Earlier in the day, prices rose to $2,777.10, their highest since October 31, when they hit a record high of $2,790.15. US gold futures climbed 0.6% to $2,781.

The dollar is down more than 1% on the week, headed for its worst weekly fall in two months, making bullion less expensive for foreign buyers.

“The dollar slipped after Trump spoke against market expectations.... This drop comes as he has refrained from implementing aggressive tariffs following his inauguration,” said Jigar Trivedi, senior analyst at Reliance Securities.

Trump called for an immediate drop in interest rates and provided no clarity on tariffs, while investors awaited a round of policy announcements from global central banks.

The lack of clarity about future policies has led market participants flocking to safe-haven assets such as gold to hedge against volatility.

Meanwhile, the Bank of Japan (BoJ) raised interest rates to their highest since the 2008 global financial crisis. Rate decisions from the US Federal Reserve and European Central Bank are scheduled for next week.

Traders see almost no chance of a Fed rate hike, according to the CME Group’s FedWatch Tool. Higher rates dampen the appeal of the non-yielding bullion.

Next week “there is a possibility of gold hitting an all-time high ... and the outlook remains positive”, Trivedi said.

Spot silver was up 1.1% at $30.78/oz, palladium gained 0.6% to $997 and platinum rose 1% to 952.75. All of the three metals were poised for weekly gains.

Reuters

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