Trump vows trade tariffs against EU
Gold hits highest since November 2024
Fed likely to hold rates steady next week
ANZ expects gold investment demand to lift

Jan 22 Reuters Gold prices hit an over 11week peak on Wednesday, not far from an alltime peak touched last year, boosted by safe haven demand stemming from uncertainty surrounding U.S. President Donald Trump39;s trade policies and a softer dollar.

Spot gold added 0.3 to 2,751.89 per ounce as of 0502 GMT, after hitting its highest since Nov. 1 earlier in the session and closing in on its record peak of 2,790.15 hit in October. U.S. gold futures gained 0.3 to 2,768.40.

There is still some uncertainty regarding when Trump wants to implement his policies on major trading partners of the U.S., causing a lot of uncertainty in direction of dollar, which is the primary shortterm catalyst driving bullish tone in gold price, said Kelvin Wong, OANDA39;s senior market analyst for Asia Pacific.

A weaker dollar makes gold more attractive for holders of other currencies. Gold is considered a safe investment during economic and geopolitical uncertainty.

Trump vowed to hit the European Union with tariffs and said his administration was discussing a 10 tariff on goods imported from China starting Feb. 1.

Gold39;s appeal as an inflation hedge may be diminished if Trump39;s policies, which are seen as inflationary, lead the Federal Reserve to maintain interest rates higher for longer. Higher interest rates dampen…