Gold prices hit a four-week high amid concerns over Trump’s policy

Gold prices rose to near four-week highs on Thursday, supported by safe-haven demand, as investors weighed how US President-elect Donald Trump’s policies would affect the economy and inflation.

Spot gold was up 0.3% at $2,670.16 an ounce, as of 10:55 a.m. ET (1555 GMT). US gold futures rose 0.6% to $2,689.50.

“Safe-haven demand is modestly supporting gold, offsetting downside pressure from a stronger dollar and higher rates,” UBS analyst Giovanni Stanovo said.

The dollar index was near a one-week high, making gold less attractive to holders of other currencies, while the benchmark 10-year Treasury yield was near an eight-month high.

“Market uncertainty is likely to continue with the upcoming inauguration of Donald Trump as the next US president,” Staunovo said.

Trump is considering declaring a national economic emergency to provide legal support for a series of universal tariffs on allies and rivals, CNN reported Wednesday, citing sources familiar with the matter.

Trump will take office on January 20 and his proposed tariffs could potentially trigger a trade war and inflation. In such circumstances, gold as a hedge against inflation is likely to perform well.

Investors’ focus now shifts to Friday’s US nonfarm payrolls at 08:30 am ET for further clarity on the Federal Reserve’s interest rate path.

Non-farm payrolls are expected to gain 160,000 jobs in December after rising 227,000 in November, a Reuters survey showed.

Gold also hit a four-week high on Wednesday after a weaker-than-expected US private employment report suggested the Fed may be less cautious about easing rates this year.

However, minutes from the Fed’s December policy meeting showed officials’ concerns that Trump’s proposed tariffs and immigration policies could prolong the battle against rising prices.

Higher rates reduce the appeal of non-yielding assets.

Physically backed gold exchange-traded funds posted their first inflows in four years, the World Gold Council said on Wednesday.

Spot silver rose 0.3% to $30.21 an ounce, platinum fell 0.2% to $953.55 and palladium fell 0.8% to $920.75.