The remarkable surge of gold continues into the beginning of trading on Friday (January 31, 2025), as it sets a new all-time high. Yesterday, gold skyrocketed by US$ 34, or 340 pips, and this morning it reached US$ 2,799.35 per troy ounce. This indicates that it is just shy of US$ 1 or 10 pips away from crossing the US$ 2,800 mark.
Despite the U.S. Federal Reserve maintaining its key interest rate at 4.25% – 4.5% on Wednesday and stating they would wait for more data before deciding on potential rate cuts, gold continues to rise.
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Although the Fed’s announcement created a somewhat negative sentiment for gold, the prevailing uncertainties ahead have allowed gold to rebound. Additionally, the United States released its fourth-quarter 2024 economic growth data, which indicated a quarterly annualized growth of 2.3%, falling short of the Trading Central forecast of 3% and the previous quarter’s 3.1%.
This report showcased that the U.S. economy is not as robust as analysts had anticipated, opening the door for the Fed to potentially reduce interest rates at least two times this year.
Moreover, U.S. President Donald Trump has renewed pressure on the Fed to lower interest rates.
Market participants are also waiting for policy announcements from President Trump, particularly regarding the proposed increases in import tariffs from Canada and Mexico that are expected to be revealed on February 1.
