Spot gold touches 10-week peak as US dollar declines

Gold bars

Spot gold prices rose today, Jan. 21, despite the negative performance in futures contracts, amid a weakening US dollar as investors scurried for safety in the traditional safe-haven to hedge against uncertainties surrounding US President Donald Trump’s tariff policies and potential trade frictions.

February gold futures fell 0.20%, or $5.6, to trade $2,743.10 an ounce at 10:58 am Makkah time. Meanwhile, spot prices advanced by 0.81% to $2,730.01 per ounce, hitting the highest level since Nov. 5, 2024.

Elsewhere, March silver futures rose 0.53% to $31.30 an ounce, while platinum spot prices dropped 0.49% to $942.64 per ounce.

This came in tandem with a 0.76% slump in the US dollar index, which gauges the greenback’s strength against a basket of six major currencies, to 108.52 points, which helped reduce the cost of buying gold with other currencies.

The US dollar's pullback came after Trump did not impose immediate tariffs on imports to the US on his first day in office, contrary to what was widely anticipated.

However, he indicated that such a step is in the cards, signaling the application of a 25% tariff on imports from Canada and Mexico as of Feb. 1.