On Wednesday (January 22, Beijing time), spot gold prices remained volatile at a high level around $2743.32 per ounce. On the previous trading day, gold prices surged to their highest point in over two months, mainly due to the weakness of the US dollar and the uncertainty brought by the possibility of US President Trump imposing tariffs, prompting investors to flock to gold as a safe haven asset.
Meanwhile, the price of US crude oil is trading around $75.81 per barrel. On his first day in office, Trump declared a national energy emergency, which sparked concerns in the market about a possible increase in US production. The market generally predicts an oversupply situation this year.
In terms of the stock market, the Dow Jones Industrial Average closed up 1.24% on Tuesday, closing at 44025.81 points; The S&P 500 index also rose 0.88% to 6049.24 points; The Nasdaq index rose 0.64% to close at 19756.78, approaching its highest level since January 6th.
Daniel Ghali, a commodity strategist at TD Securities, pointed out that Tuesday's gold price trend is closely related to the tariff threat proposed by Trump after his inauguration, and relevant information is gradually being released. Although Trump did not provide specific details on imposing universal tariffs or additional taxes on major trading partners, he has hinted that tariffs on Canadian and Mexican goods may be imposed as early as February 1st.
In addition, Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, stated that the market may still be waiting for next week's Federal Open Market Committee (FOMC) meeting and the release of personal consumption expenditure (PCE) price index, particularly inflation data. Despite market expectations that the Federal Reserve will not take any action next week, investors will closely monitor its policy statements for policy implications for the remainder of this year.
In terms of other precious metals, spot silver rose 0.9% to $30.77 per ounce; Palladium rose 1.1% to $955.50; The price of platinum, on the other hand, remained relatively stable at $942.40.
