Investing.com – Gold prices jumped in Asian trading on Friday, hovering near record highs, as the dollar weakened after U.S. President Donald Trump’s call for immediate interest rate cuts, while uncertain tariffs further strengthened bullion’s safe-haven appeal.
it rose 0.7% to $2,773.91 an ounce, its highest level since late October, and was just shy of a record high of $2,790.41.
which expires in February gained 0.6% to $2,781.39 an ounce by 00:21 ET (05:21 GMT).
The yellow metal was set to rise nearly 3% this week as the dollar faced pressure from the gradual imposition of US tariffs and Trump’s demand for rate cuts.
Trump’s rate cut request pushes gold higher
In his address to the World Economic Forum in Davos, President Donald Trump urged OPEC and other oil-producing countries to lower oil prices and urged global central banks to cut interest rates.
Gold tends to rise due to lower interest rates as it becomes a more attractive investment compared to interest-bearing assets.
It fell 0.4% in Asian trading on Friday and was set for its worst week in two months.
The dollar fell sharply on Monday as Trump avoided details on whether to impose US trade tariffs early in his term, indicating the tariffs are expected to come more slowly.
A weaker dollar usually boosts gold prices because it makes the metal cheaper for buyers using other currencies.
The rise in bullion prices also reflects that markets are bracing for global uncertainty as Trump’s policy announcements and customs declarations are expected to cause increased volatility.
Other precious metals also jumped due to the weak dollar. rose 1.6% to $982.85 an ounce, while also rose 1.6% to $31.348 an ounce.
Copper returns to a weaker dollar
Copper prices rose on Friday, recovering from a continued subdued performance this week as the US dollar fell.
Following Trump’s inauguration, a combination of expected US tariffs and the prospect of a stronger dollar weighed on the red metal.
The benchmark on the London Metal Exchange rose 0.8% to $9,318.50 a tonne, while February jumped 1.3% to $4.3845 a pound.
