Gold Steady Ahead of Fed Announcement

29 Jan 2025 , 10:25 AM

Wednesday saw a minor recovery in gold prices following a tech-driven market selloff, as concerns over U.S. tariffs fueled demand for safe haven assets and attention turned to the Federal Reserve’s meeting conclusion later in the day.

Spot gold remained stable at $2,765.35 an ounce. At $2,772.10, U.S. gold futures increased by 0.2%.

Driven by DeepSeek’s low-cost AI model, the price of bullion dropped more than 1% on Monday, the steepest since Dec. 18. Other asset classes saw risk-averse swings as a result of the previous session’s steep drops in global equity markets.

Trump stated in a speech on Monday that he will slap tariffs on steel, copper, and aluminum in order to encourage manufacturers to produce these goods in the US.

In times of uncertainty and trade disputes, gold usually serves as a safe-haven asset.

With Chinese markets still closed for the Lunar New Year holidays, investors’ attention is now on the Fed’s first policy meeting of the year.

After dropping rates by 100 basis points from September to December, the Fed is anticipated to maintain them at their current level when it begins its two-day meeting on Tuesday.

For feedback and suggestions, write to us at [e-mail]