Gold rises amid uncertainty about global trade

Gold bars

Gold prices rose on Tuesday amid uncertainty about global trade prospects as the inauguration of US President Donald Trump approached. Trump threatened to impose additional tariffs on several countries as part of a protectionist approach that could reignite inflationary pressures.

Gold futures for February delivery increased by 0.18% or $4.80 to $2,683.40 per ounce as of 10:36 am KSA time, following a 1.35% decline at the close of trading on Jan. 13.

Spot gold rose by 0.24% to $2,668.57 per ounce, while silver futures for March delivery remained steady at $30.31 per ounce. Meanwhile, platinum spot prices increased by 0.29% to $959.06 per ounce.

This coincided with a 0.43% drop in the US dollar index, which measures the value of the American currency against six major currencies, to 109.49 points.

Additionally, global trade tensions escalated due to threats from President-elect Trump to increase tariffs on Chinese, European, and other countries’ goods.

There is also uncertainty over the outlook for monetary policies in major economies, which has driven investors away from holding sovereign bonds. This comes after Federal Reserve members indicated during their December meeting the potential slowing of interest rate cuts in 2025.