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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.

Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

Uol
Aretilaw firm
eCredo
The Future Forbes Realty Global Properties

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