Gold prices gain more ground as investors flock to safe havens

Gold bars

Gold prices gained additional ground today, Jan. 22, as investors flocked to safe-haven assets to hedge against risks related to potential turmoil fueled by the planned trade policies of newly-elected US President Donald Trump.

February gold futures advanced 0.23%, or $6.40, to $2,765.60 per ounce at 10:45 am Makkah time. Spot prices also soared 0.27% to $2,751.88 per ounce, after hitting an 11-week peak at $2,751.89 apiece in early trading.

March silver futures, likewise, added 0.36% to $31.61 an ounce, with platinum spot prices also up 0.13% to $948.33 per ounce.

On the other hand, the US dollar index, which gauges the greenback’s strength against a basket of six major currencies, held steady at 108.15 points.

“There is still some uncertainty regarding when Trump wants to implement his policies on major trading partners of the US, causing a lot of uncertainty in direction of dollar, which is the primary short-term catalyst driving bullish tone in gold price,” said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.

In a press conference at the White House yesterday, Trump said his administration is considering imposing a 10% tariff on Chinese imports starting Feb. 1.