Gold prices are showing strength, rising 0.3% to $2,668.79 per ounce, driven by a combination of a weakening dollar and strategic responses to the incoming Trump administration’s trade policies. The market’s positive reaction stems from reports suggesting a gradual approach to implementing new tariffs, which could help manage inflationary pressures. This development has led to declining Treasury yields and a retreat in the dollar from its two-year high, making gold more attractive to international buyers. Market attention is now focused on crucial economic indicators, including PPI and CPI data, with economists projecting annual inflation to reach 2.9%, up from November’s 2.7%. Analysts at Heraeus Precious Metals warn that increased inflation from Trump’s policies could potentially eliminate the possibility of Fed rate cuts, while UBS predicts significant supply constraints in the platinum market for 2025, projecting a deficit of 500,000 ounces.