Gold News: Prices Near Record High as Dollar Weakens and Trump Calls for Rate Cuts

Gold Prices Surge as Traders Eye Record Highs at $2,790

Gold prices rallied sharply on Friday, pushing towards the all-time high of $2,790.17 as traders evaluated the metal’s bullish momentum. The focus remains on whether gold can sustain a breakout above this critical level or face a short-term correction.

A strong breakout will depend on robust buying volume, while a low-volume move, driven by short-covering or buy stops, could see profit-taking trigger a dip, offering potential buying opportunities for bulls.

At 12:28 GMT, XAU/USD is trading $2778.78, up $23.92 or +0.87%.

Gold Eyes Fourth Weekly Gain on Dollar Weakness and Trump’s Comments

Spot gold has climbed steadily this week, marking its highest level since October. If prices hold, this would be the fourth consecutive weekly gain for the precious metal. The rally was bolstered by U.S. President Donald Trump’s recent calls for lower interest rates and his suggestion of a softer stance on China tariffs, which pressured the U.S. dollar to a one-month low. A weaker dollar typically benefits gold by making it more affordable for foreign buyers.

Gold’s strength also reflects broader concerns about global economic uncertainty and inflationary pressures, as zero-yield bullion remains a favored hedge in periods of market volatility. Trump’s remarks at the World Economic Forum in Davos, calling for immediate rate cuts, have fueled speculation ahead of next week’s Federal Reserve meeting, though policymakers are expected to keep rates unchanged.

Treasury Yields Slip Amid Inflation Concerns

U.S. Treasury yields dipped on Friday as traders digested Trump’s statements and awaited upcoming economic data, including the S&P Global Composite PMI and existing home sales. BlackRock CEO Larry Fink noted that Trump’s fiscal policies could stoke “new inflationary pressures,” potentially leading to elevated interest rates. Fink projected a 10-year Treasury yield of 5.5% if inflation accelerates, which could challenge equity markets while indirectly supporting gold.

Dollar Weakness Adds Tailwind to Gold

The U.S. dollar remained under pressure, hitting a one-month low and on track for its worst weekly loss in over a year. Trump’s softer tone on tariffs, coupled with dovish interest rate expectations, drove traders out of the greenback. The euro rose 0.7% to $1.0489, while sterling gained 0.6%, underscoring dollar weakness and further underpinning gold’s advance.

Market Forecast: Bullish Momentum Intact

Gold appears poised for further gains in the near term, with its bullish momentum supported by a weaker dollar, dovish interest rate sentiment, and lingering economic uncertainty.

While traders should monitor potential corrections if the $2,790 level is tested on low volume, the broader outlook remains bullish, with a breakout likely to extend toward uncharted territory if supported by strong buying interest.

More Information in our Economic Calendar.