Gold Edges Higher as Lutnick Talks Tariffs and Fed Holds Steady
Gold prices inched up on Wednesday as investors digested comments from U.S. Commerce Secretary Howard Lutnick about potential global tariffs.
The precious metal gained support from risk aversion on Wall Street but faced headwinds from expectations that the Federal Reserve would keep interest rates unchanged.
February gold futures rose 0.08% to settle at $2,769.80 per ounce on the Comex division of the New York Mercantile Exchange. The metal fluctuated near flat levels throughout the session.
Higher Treasury yields and a stronger dollar initially weighed on gold ahead of the Fed decision. Lutnick told senators the White House plans to impose regular tariffs on imported goods starting in April.
He also mentioned new specific tariffs for Mexico, Canada, and China. Lutnick acknowledged prices could rise but said not all Trump administration policies would stoke inflation.
[arve url=”https://www.riotimesonline.com/wp-content/uploads/2025/01/Gen-3-Alpha-Turbo-2956909153-gold_1-sixteen_nine-M-5.mp4″ loop=”true” autoplay=”true” /]
The dollar weakened against major rivals after Lutnick‘s remarks. This gave gold fresh momentum in afternoon trading. Investors often view gold as a hedge against inflation and currency devaluation.
TD Securities expects gold buying activity to continue. The firm sees positive momentum for the metal, especially around the Fed meeting. Macro funds remain 20% below levels seen during the U.S. election, TD notes.
This suggests room for more purchases if the Fed strikes a dovish tone or if gold hits new record highs. SP Angel points out gold prices have seen volatile trading recently.
The metal rallied Friday before selling off sharply on Monday. The firm believes the Fed will likely confirm expectations for steady rates given recent inflation concerns.
Analysts say gold could see further gains if the Fed signals openness to rate cuts later this year. However, a hawkish surprise from policymakers may pressure the non-yielding metal. Investors await clarity on the Fed’s policy outlook and economic projections.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.