Gold prices rise as selling wave calms

Gold bars

Gold prices advanced today, Jan. 28, as the selling wave by investors to cover losses in stock markets due to the turmoil caused by the Chinese artificial intelligence (AI) model DeepSeek calmed.

February gold futures grew by 0.23%, or $6.4, to $2,744.80 per ounce at 10:47 am Makkah time, while spot prices held steady at $2,740.72 an ounce.

March silver futures, on the other hand, fell slightly by 0.11% to $30.38 per ounce, with platinum spot prices also down 1% to $940.14 an ounce.

Global stock markets suffered widespread losses yesterday as tech shares fell due to the competitiveness of the Chinese AI model DeepSeek, which was released on Jan. 10, both in terms of capabilities and construction costs, no to mention its free-of-charge use.

This led to a wave of gold sales to cover stock market losses. However, the precious metal recovered during today's session as the Federal Reserve meeting approached.

The Fed’s policy meeting kicks off today and ends on Wednesday, during which the US central bank is projected to fix key interest rates within the 4.25-4.5% range.

But the yellow metal’s gains during today’s session were limited by the 0.57% uptick in the US dollar index, which gauges the greenback’s strength against a basket of six major currencies, to 107.95 points.

This is against the backdrop of expectations of fixed US interest rates and the potential trade woes of President Donald Trump's anticipated policies.