HONG KONG, Jan 31, 2025 (BSS/AFP) - The price of gold hit a new record on
Thursday, lifted by uncertainty over the economic policies of US President
Donald Trump and the dollar's weakness following a disappointing US growth
report.

Around 1800 GMT, gold futures were trading at $2,844 an ounce, after earlier
in the session hitting a record high of $2,853.

The price of spot gold was sitting at $2,796, having hit its own peak of
2,799.65 Thursday.

The previous peak owed in large part to geopolitical unrest in the Middle
East and Ukraine, whereas the latest spurt was more linked to inflationary
concerns about Trump's policies, according to Susannah Streeter, head of
money and markets at Hargreaves Lansdown.

"Gold is shining as a safe haven asset, with investors seeking shelter to
weather the storm of unpredictability," she said.

"With US President Donald Trump still dangling the threat of tariffs over
near neighbours and far foes, there are concerns that they could push up US
consumer prices, increase inflation, and lead to interest rates staying
higher for longer."

She added that this week's "gyrations on stock markets, caused by progress
made by Chinese AI rival DeepSeek may also have helped gold's glittering run
upwards".

Gold was also boosted when a report on US economic growth came in a bit
weaker than expected, putting an end to a recent dollar rally.

Gold profited last year as central banks began to cut interest rates and
thanks to a reduced import tax on the commodity in India, the world's second-
largest consumer of gold jewellery.

A consequence of record gold prices has been a sizable increase in the
recycling of the precious metal.