On 30th January, 2025, the price of gold registered a lifetime high. Even today, the high gold prices indicate a spike up in gold prices for five weeks in a row. The reason for this is growing worries about the uncertainties of the tariff policies under Trump’s regime. This has led to many investors opting for purchasing gold as it is considered as the safe investment in the midst of increasing uncertainty in the economy. Also, investors are anticipating the release of the US inflation report.

Performance of gold
Currently, the price of gold was $2,795.92 and it surged by about 0.1 percent. In a period of one week, the gold prices have surged to about 1 percent. In the previous trading activity, the price of gold was recorded as all-time high and it accounts for $2,799.71.

Reasons for high gold prices
Trump announced that the US would enforce tariffs of about 25 percent on import goods coming from Canda and Mexico. In the current scenario of growing economic uncertainty and geopolitical tension, investment in gold is considered as the safest option for investors. Also, the performance of gold is quite good in conditions of low interest rates in the economy.

In case of low inflation levels in the US inflation report will lead to higher possibility of reduction in interest rate by the Federal Reserve. This contraction in interest rate will certainly help in making gold attractive for investors.

The report of the US personal consumption expenditures is yet to be released. The data of this report will help to find any possible changes in the interest rate in the upcoming terms. The head of Federal Reserve, Jerome Powell states that change in interest rate will depend on reports of employment and inflation level in the economy. At this point of time, the interest will remain the same.

Following November, 2024, around 12.9 million troy ounces of gold was transferred to commodity exchange storage facilities. It led to a surge in the amount of gold in the storage facility to about 73.5 percent which accounts for 30.4 million ounces. It is the largest amount after the month of July 2022. In case of implementation of suggested tariffs then the prices of gold will continue to rise and lead to a new of about 2,800 dollars.

The Central Bank of Europe reduced the lending cost by around 25 basis points. It also indicates future interest rate cuts in the upcoming terms.

Performance of other commodities
The current price of one ounce of silver and palladium is around $31.54 and $987.10, respectively. The price of silver rose by about 0.4 percent. In contrast to this, there was a contraction of the price of palladium by around 0.2 percent. The price of platinum expands to $967.80 per ounce which accounts to rise by 0.1 percent. The prices of commodities such as platinum and silver are anticipated to surge in the weekly gains. Contrary to this, the price of palladium is anticipated to decline.