Today’s markets analysis on behalf of Hassan Fawaz Chairman & Founder of GivTrade
28th January 2025
Gold markets were relatively stable today after declining over 1% yesterday. Market sentiment has been affected by US President Donald Trump‘s recent trade tariff threats, which have sparked concerns over their potential economic impact. These concerns could drive investors toward safe-haven assets like gold. In this regard, the metal could continue to find support from heightened economic uncertainty surrounding Trump’s second term and future policy announcements. Over the long term, gold could also continue to find strength in the sustained demand from central banks.
At the same time, investors are closely monitoring the Federal Reserve’s two-day policy meeting. While the central bank is expected to maintain interest rates unchanged, market participants are particularly interested in Fed Chair Jerome Powell’s upcoming speech, where he could address President Trump’s calls for interest rate cuts and potentially hint at the next steps in monetary policy. Trump’s potentially inflationary policies could prompt the Fed to maintain elevated rates for longer, which could weigh on gold.