The price of Gold (XAUUSD) surged during trading on Friday morning (January 24, 2025), while USDJPY fell, indicating that the United States dollar is experiencing pressure.
Gold jumped by $23 or 230 pips to reach $2,777.25 per troy ounce, marking its highest level since October 31 when this precious metal recorded its all-time peak at $2,790 per troy ounce. In other words, Gold is now just 130 pips away from breaking its all-time high again.
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This increase in Gold prices followed a statement from U.S. President Donald Trump, who indicated that he would urge The Fed to lower interest rates promptly. It is well-known that a reduction in interest rates by The Fed can have a positive effect on Gold prices.
Furthermore, the U.S. dollar is under pressure, leading to a decline in USDJPY. This currency pair has experienced significant volatility due to the recent decision by the Bank of Japan (BoJ) to raise interest rates to 0.5% from the previous 0.25%. In Europe, both EURUSD and GBPUSD have shown substantial gains this morning.
Trump’s pressure on The Fed has also created a positive sentiment in the stock indices. Nasdaq has rebounded and is inching closer to its all-time high.
