Gold set for 4th consecutive week of gains

• Gold hit above $2,770
   
• Trump calls for interest rate cuts
   
• Weaker US dollar fueled gold's upward momentum
   
• Central banks actions contribute to gold's appreciation

Gold surged above $2,770 on Friday, marking its highest level since October and nearing its all-time peak of $2,790.

The rise in gold prices came upon President Trump’s call for an immediate reduction of interest rates.

Lower interest rates tend to increase the appeal of non-yielding assets like gold.
 

The uncertainty surrounding Trump’s proposed trade tariffs and immigration measures has also increased Gold’s appeal as a safe-heaven asset.

Additionally, a weaker US dollar further bolstered the precious metal’s upward momentum.

Market participants are now focusing on upcoming decisions from major central banks.

This morning Bank of Japan, as expected by the markets, has performed a 25-basis point increase in interest rates, while the Fed is predicted to maintain its current policy, at 4.5%, at the meeting next week.

Meanwhile, the European Central Bank is anticipated to implement a 25-basis point rate cut.

These combined factors have fueled demand for gold, positioning the metal to potentially secure its fourth straight weekly advance.

Here is how the benchmark XAUUSD is faring against other XAU crosses (week to date performance):
 

Source: Alpari’s MT5; as of 01/24/2025 ~7:00 AM UTC