Gold Pares Losses as Trump Demands Rate Cuts, Urges Tariffs
Gold rebounded after President Trump reiterated tariff threats and pushed for lower interest rates during his address at Davos.
Lower borrowing costs are generally positive for precious metals like gold. Recent safe-haven demand has supported gold prices due to concerns over the Biden administration's foreign relations.
Trump has targeted China, the EU, Canada, and Mexico with potential tariffs, creating uncertainty in the market.
The Federal Reserve's rate cuts in 2023 contributed to gold's best year since 2010. Experts suggest that Trump's policies could lead to inflation and hinder economic growth.
This may complicate the Fed's interest rate decisions, as policymakers may need to raise rates to control inflation. Higher rates would make gold less attractive.
Data showing increased jobless claims initially weighed on gold prices. As of 12:26 p.m. ET, gold traded at $2,754.39 per ounce, down 0.1%. Silver and platinum declined, while palladium gained.