Investing.com– Gold prices jumped in Asian trading on Friday, hovering near record highs, as the dollar weakened following U.S. President Donald Trump’s call for immediate interest rate cuts, while looming tariff uncertainties further bolstered bullion’s safe-haven appeal.
rose 0.7% to $2,773.91 per ounce to its highest level since late October, and was slightly shy of the record high of $2,790.41.
expiring in February gained 0.6% to $2,781.39 an ounce by 00:21 ET (05:21 GMT).
The yellow metal was set to gain nearly 3% this week as the dollar faced downward pressure from the gradual imposition of U.S. tariffs and Trump’s rate cut demand.
Trump’s rate-cut demand pushes gold higher
In his address to the World Economic Forum in Davos, President Donald Trump called for OPEC and other oil-producing nations to reduce oil prices and urged global central banks to lower interest rates.
Gold tends to rise on lower interest rates because it becomes a more attractive investment relative to interest-bearing assets.
The fell 0.4% during Asian trading on Friday, and was set for its worst week in two months.
The dollar had fallen sharply on Monday as Trump avoided details on the imposition of U.S. trade tariffs at the start of his term, indicating tariffs were expected to come at a slower pace.
A weaker dollar typically drives gold prices higher because it makes the metal cheaper for buyers using other currencies.
The rise in bullion prices also reflects that markets are bracing for global uncertainty as Trump’s policy announcements and tariff declarations are expected to spark increased volatility.
Other precious metals also jumped on the weak dollar. surged 1.6% to $982.85 an ounce, while also climbed 1.6% to $31.348 an ounce.
Copper rebounds on weaker greenback
Copper prices rose on Friday, rebounding from their continued subdued performance this week, as the U.S. dollar declined.
After Trump’s inauguration, a combination of anticipated U.S. tariffs, and prospects of a stronger dollar, had weighed on the red metal.
Benchmark on the London Metal Exchange rose 0.8% to $9,318.50 a ton, while February jumped 1.3% to $4.3845 a pound.
