Gold is on track to post its third consecutive week of gains, supported by a series of record highs this week. The precious metal rose after signals from the Federal Reserve suggesting rate cuts for the year and growing demand for safe-haven assets amid global economic and geopolitical uncertainties.
As of 02:35 GMT, spot gold was down 0.3%, trading at $3,034.09 per ounce. It had reached a record high of $3,057.21 per ounce on Thursday, with an overall increase of about 2% this week.
U.S. gold futures remained steady at $3,042.60.
Kyle Rodda, a financial market analyst at Capital.com, stated, “I don’t think we even need a trigger for gold to hit another record high. All the fundamentals are there for it to continue rising.” He added, “While there may not be an immediate correction, a pullback to the $3,000 range could be likely before gold resumes its upward trend.”
On Wednesday, the Federal Reserve kept its benchmark interest rate steady between 4.25% and 4.50%, with expectations of two quarter-point rate cuts by the end of the year.
Fed Chair Jerome Powell noted that U.S. President Donald Trump’s policies, including heavy tariffs on imports, have contributed to slower growth and temporarily higher inflation in the U.S. economy.
In other news, Israeli airstrikes killed 91 Palestinians in Gaza on Thursday, following the resumption of bombing and ground operations. This broke a ceasefire that had been in place for two months.
The combination of tariff uncertainty, expectations of rate cuts, and renewed tensions in the Middle East has pushed gold to new heights, reaching 16 record highs this year, including four above the $3,000 mark. Gold, as a non-yielding asset, benefits from a low interest rate environment and serves as a hedge against geopolitical and economic turmoil.
Meanwhile, spot silver dropped 0.8% to $33.26 per ounce, platinum fell 0.2% to $983.10, and palladium decreased 0.5% to $947.78. All three metals were set for weekly losses.
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