[BENGALURU] Gold traded just below the record high hit in the previous session on Wednesday (Mar 19), supported by safe-haven demand spurred by geopolitical tensions and tariff uncertainty, while traders awaited the US Federal Reserve’s policy decision.
Spot gold fell 0.1 per cent to US$3,031.36 an ounce as at 0102 GMT. Bullion reached an all-time high of US$3,038.26 per ounce on Tuesday.
US gold futures eased 0.1 per cent to US$3,037.90.
Israeli airstrikes pounded Gaza and killed more than 400 people on Tuesday, Palestinian health authorities said, shattering nearly two months of relative calm since a ceasefire began, as Israel warned the onslaught was “just the beginning”.
Investors are worried about an economic slowdown and elevated risks of recession due to US President Donald Trump’s tariffs, which are widely considered likely to stoke inflation.
The tariffs have flared up trade tensions and include a flat 25 per cent levy on steel and aluminium, which came into effect in February, and reciprocal and sectoral tariffs to be imposed on Apr 2.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Gold, historically considered a hedge against geopolitical and economic uncertainties, has gained over 15 per cent year-to-date.
Meanwhile, the Fed, which will conclude its two-day policy meeting later in the day, is expected to hold its benchmark interest rate steady in the 4.25 to 4.5 per cent range.
Market participants also awaited Fed chair Jerome Powell’s speech following the rate decision for clues on the central bank’s monetary policy trajectory.
Non-yielding gold thrives in a low interest rate environment.
Spot silver fell 0.3 per cent to US$33.93 an ounce, platinum lost 0.3 per cent to US$994.60 and palladium eased 0.1 per cent to US$966.11. REUTERS
Share with us your feedback on BT’s products and services
