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Gold Continues to Rise
Tuesday, 21 January 2025 10:41 WIB | GOLD |EMAS

Gold prices rose above $2,720 an ounce on Tuesday (1/21), extending gains from the previous session as investors remained focused on the potential impact of U.S. President Donald Trump's policies during his second term. Trump said he may impose 25% tariffs on Mexico and Canada starting early next month, although he did not provide a timetable for China tariffs. Those tariffs, if enacted, could trigger a trade war, boosting demand for safe haven assets like bullion.

At the same time, investors are weighing inflation risks, as Trump's agenda of tax cuts and increased government spending could contribute to rising price pressures, potentially limiting the Federal Reserve's ability to ease monetary policy. This could have a negative impact on bullion as higher interest rates reduce the appeal of holding non-yielding assets. On the geopolitical front, traders are closely monitoring the impact of a long-delayed ceasefire agreement between Israel and Hamas. (AL)

Source: Trading Economics

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