The reasons for today's gold movements and future forecasts

Gold prices climbed to their highest level in more than ten weeks on Tuesday and reached highs of 2730 dollars per ounce, also with the fall of the US dollar.

After the inauguration of US President Donald Trump yesterday, investors sought the safe metal to hedge against the uncertainty raised by his tariff plans.

However, Trump has said he is considering imposing 25% tariffs on imports from Canada and Mexico from February 1.

After weeks of global speculation about what tariffs Trump will impose on his first day in office, the news that Trump will take longer to impose tariffs caused relief in global stocks but put pressure on the US dollar.

This has made gold prices hold up for the time being, and expectations indicate that gold will remain an attractive hedging tool.

Since gold is used as a safe investment in times of economic uncertainty, the degree to which the incoming administration implements Trump's policy pledges will also significantly affect the future direction of US interest rates.

Trump's policies are seen as inflationary, which may lead the Fed to keep interest rates higher for a longer period, which weighs on gold because it does not generate any interest and it is possible to see declines also coming next period for the precious metal.

Given how events have moved prices, volatility is strongly likely in the coming weeks.