Gold Price Surges by 0.84% to $2,689.76 Amid Economic Uncertainty

EghtesadOnline: According to a report by Tasnim News Agency citing Reuters, the instability caused by the Trump administration's policies has increased demand for gold as a safe-haven asset, pushing the price of the precious metal higher. This price increase comes at a time when better-than-expected U.S. job market data has raised expectations for the Federal Reserve to implement stricter monetary policies this year.

The price of gold per ounce rose by 0.84% to $2,689.76 today. The price of gold futures on the New York COMEX market also rose by 0.90%, reaching $2,715.

Following the release of U.S. employment data showing an increase of 256,000 jobs last month, the price of gold initially dropped to $2,663.09. Economists had expected an increase of 160,000 jobs on the U.S. payrolls.

However, gold quickly rebounded to its highest level since December 12 and recorded a weekly price increase of more than 1.7%.

The U.S. employment report strengthened the dollar but led to a sharp decline in U.S. stock markets. Market indicators suggest traders expect the Federal Reserve to reduce interest rates by just 30 basis points over the next year.

As Trump’s inauguration approaches on January 20, investors are concerned about his policies regarding tariffs on a wide range of imports, which could lead to inflation and limit the Federal Reserve's ability to lower interest rates.

Although gold is traditionally seen as a safe hedge against inflation, rising interest rates tend to reduce the attractiveness of this non-yielding asset.

Among other precious metals, silver rose by 0.96% to $31.31, while platinum increased by 0.39% to $965.80.