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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.

TikTok Returns To US App Stores 

TikTok is once again available for download in the Apple and Google app stores in the US, following a delay in the enforcement of its ban by former President Donald Trump. The ban’s postponement until April 5 gives the administration additional time to evaluate the situation.

Key Developments

The decision to restore TikTok access came after Google and Apple received reassurances from the Trump administration that they would not face legal consequences for reinstating the Chinese-owned app. According to Bloomberg, US Attorney General Pam Bondi sent a letter outlining these guarantees.

In an executive order signed on January 20, Trump instructed the attorney general not to take enforcement action for 75 days, providing time for his administration to determine how to proceed.

Uncertain Future For TikTok In The US

While TikTok is back on the US app stores, its long-term survival remains uncertain. If no deal is reached by early April to address national security concerns, the app may face another shutdown. ByteDance, the parent company, has insisted that TikTok is not for sale.

Legislation And Pressure On ByteDance

The Protecting Americans from Foreign Enemy-Controlled Apps Act, which passed with bipartisan support in Congress, mandates a nationwide ban on TikTok unless ByteDance sells its US operations. This law was signed by President Joe Biden in April of last year.

In late January, the app was briefly removed from US stores following the ban’s activation, impacting over 170 million American users. However, TikTok was restored soon after, following Trump’s intervention in his first hours as president. During that time, he signed an executive order allowing 75 days for a deal that would safeguard national security. Trump also suggested that the US could take a 50% stake in TikTok, a move he believed would keep the app “in good hands.”

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