As investors awaited additional guidance from the new Trump administration regarding possible tax cuts and trade policies, gold remained stable near its record high on Thursday.
Spot gold remained stable at $2,755.68 an ounce. Wednesday’s price increase to $2,763.43 was the most since a record high of $2,790.15 on October 31.
The price of US gold futures dropped 0.2% to $2,764.90.
On February 1, U.S. President Donald Trump announced that his administration was considering levying a 10% tax on Chinese imports. Without going into further detail, he also pledged taxes on imports from Europe.
He had previously stated that by February 1, taxes of about 25% might be imposed on Canada and Mexico.
The Fed will meet next week with the economy still expanding and inflation still on the decline, but there are still questions about the incoming administration’s objectives.
At its upcoming policy meeting on January 28–29, the central bank is anticipated to maintain its benchmark interest rate at its current level. Increased interest rates make non-yielding gold less appealing.
European Central Bank members backed additional interest rate cuts on Wednesday, suggesting that the decrease next week is virtually certain and that other actions will follow even if the Fed continues to exercise caution.
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