Persistent trade policy uncertainty and falling Treasury yields continue to underpin bullish sentiment in the gold market.
Gold prices advanced significantly last week, approaching the all-time high of $2,790.17 as a combination of a weaker dollar, trade uncertainty, and inflationary concerns supported the metal's safe-haven appeal. Spot gold rose to $2,770.88, up 2.51% for the week, marking a fourth consecutive weekly gain.
The U.S. dollar index suffered its worst weekly performance in over a year, declining 1.77% to 107.465. U.S. President Donald Trump's comments on tariffs and his call for lower interest rates at the World Economic Forum in Davos played a significant role in this decline. A softer dollar makes gold more attractive to foreign investors, reinforcing its rally.