The precious metal gold closed higher on Friday, nearing its record closing price. Investors sought the safe-haven asset due to uncertainties surrounding Donald Trump’s potential return to the White House.
The weakening dollar and lower Treasury yields in foreign markets also contributed to gold’s rise. February gold futures on the Comex division of the New York Mercantile Exchange (Nymex) climbed 0.50% to $2,778.90 per troy ounce.
The yellow metal gained 1.09% over the week. Gold has already risen more than 5% this year, driven by uncertainty about President Trump’s trade policy plans. BMI analysts note that the dollar’s recent weakness has boosted gold‘s appeal as a safe-haven asset.
However, they warn of significant risks for the commodity in 2025. The market should expect considerable volatility as the Federal Reserve may adopt a more cautious approach to interest rate cuts. This could hurt gold, which does not yield interest.
Ole Hansen from Saxo Bank offers a more optimistic outlook. He believes that safe-haven demand in an uncertain geopolitical landscape and continued central bank purchases could push the precious metal to $2,900 per troy ounce this year.
China’s central bank, the People’s Bank of China (PBoC), has expanded its gold reserves. In 2024, it added 44.17 tons, bringing the total to a record 2,279.57 tons.
This information comes from the state news agency Xinhua, citing data from the China Gold Association. Gold’s recent performance reflects global economic uncertainties and geopolitical tensions.
Investors continue to view it as a reliable store of value during turbulent times. As the market anticipates potential policy shifts and monitors central bank actions, gold remains a key player in the global financial landscape.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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