Gold prices are surging, driven by haven demand related to trade and geopolitical uncertainties. A weakening US Dollar, potential Federal Reserve policy easing, sustained central bank buying, and increased ETF inflows further support the precious metal. Investor attention is now focused on the Federal Reserve’s policy meeting for further cues on interest rate outlook.
- Gold prices climbed over 1% to approximately $5,080 per ounce, hitting an all-time high above $5,110.
- President Trump threatened tariffs on various goods, citing a lack of progress on trade deals.
- The US Federal Reserve is holding a two-day policy meeting; interest rates are expected to remain unchanged.
- Bullion has risen almost 17% this year, supported by debasement trade, central bank purchases, and ETF inflows.
- Gold is drawing support from a struggling US Dollar, ongoing uncertainty around trade policy, and geopolitical risks.
- Prospects for further policy easing by the US Federal Reserve (Fed) provide a strong boost.
- Trump withdrew his tariff threat after claiming a framework deal had been reached for a future deal on Greenland with NATO.
- Russia launched another massive attack on Ukraine, keeping geopolitical risks in play.
- Trump threatened he would impose a 100% tariff on Canada if it follows through on a trade deal with China.
- The USD Index (DXY) slumps to its lowest level since September 2025.
- The People’s Bank of China (PBOC) extended its gold-buying spree for a fourteenth month in December.
- Global demand for investments in gold through exchange-traded funds increased by 25% in 2025.
- Gold holdings increased significantly, and total Assets Under Management in ETFs stood at $558.9 billion.
This suggests a bullish outlook for gold, driven by a confluence of factors. Safe-haven demand, related to global uncertainties, coupled with central bank activity and a weakening dollar, are creating a favorable environment for price appreciation. The market is closely watching the Federal Reserve’s actions, as any indication of easing monetary policy could further fuel the rally.