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Gold prices rise as dollar falls
Spot gold prices rose on Thursday, January 23, as the dollar fell after US President Donald Trump called on the Federal Reserve to cut interest rates, while the market remained focused on the fallout from Trump’s policies.
Spot gold prices rose 0.1% to $2,753.19 per ounce at 2028 GMT.
This came after prices reached a three-month high on Wednesday, which was just $26.72 away from its record level of $2,790.15 hit at the end of October.
While US gold futures fell 0.2% at the settlement to $2,765, according to Reuters.
The rise in spot gold comes as the dollar index fell 0.2%, increasing the metal’s appeal to holders of other currencies.
“Part of it is the dollar,” said Daniel Pavilonis, chief market analyst at RJO Futures. “It was up this morning and then it sold off, which lifted gold off its lows.”
“Today’s moves are just a perception of where the White House is going. I think part of the volatility was because of the prediction,” Pavilonis added.
The US president said during his participation in the World Economic Forum in Davos, Switzerland, that he would ask the Federal Reserve to cut interest rates immediately, urging other countries to do the same.
