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Gold Hits Near 3-Month High Amid Trump Policy Uncertainty And Dollar Weakness

Gold prices climbed to their highest level in almost three months on Wednesday, driven by rising uncertainty surrounding U.S. President Donald Trump’s policies and a weakened dollar, making the precious metal a more attractive safe-haven investment.

The spot price of gold increased by 1.4%, reaching $2,761 per ounce by 4 p.m. It earlier touched its highest point in 12 weeks, approaching its record high of $2,790.15 set in October. U.S. gold futures also saw a modest rise of 0.3%, settling at $2,766.80.

In contrast, silver experienced a slight dip, falling 0.24% to $30.71, though it remained near the one-month high reached on January 16. Meanwhile, the dollar index slipped to its lowest point in more than three weeks. A weaker dollar enhances gold’s appeal for investors holding other currencies, increasing its demand.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, commented, “Gold and silver prices have both benefited from the heightened uncertainty created by Trump’s statements, including tariffs. Investors are also weighing the inflationary effects of these policies and their potential impact on monetary decisions. Over the coming weeks, the precious metals market will be influenced by the constant flow of news from Washington,” he told Reuters.

Trump has threatened tariffs on European Union imports and indicated plans for a 10% tariff on Chinese goods, citing concerns over fentanyl trafficking from China to the U.S. through Mexico and Canada.

However, gold’s appeal as an inflation hedge could diminish if Trump’s policies, which many analysts expect to be inflationary, lead the Federal Reserve to keep interest rates elevated for a longer period. Since gold doesn’t generate income, higher interest rates make other investments more attractive.

A slight majority of economists polled by Reuters expect the U.S. Federal Reserve to hold interest rates steady during its meeting on January 29.

ANZ analysts noted that central bank purchases are providing a strong demand base for gold, and they expect investment demand to rise, potentially offsetting losses in physical demand.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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