[BENGALURU] Gold held steady on Friday (Mar 21) to trade below its record high hit in the previous session, supported by safe-haven demand arising from geopolitical and economic uncertainty, while the US Federal Reserve’s hint at rate cuts this year also fostered appeal.
Spot gold was flat at US$3,043.89 an ounce as at 0030 GMT. Bullion reached an all-time high of US$3,057.21 per ounce in the previous session. It has climbed around 2 per cent so far for the week.
US gold futures rose 0.3 per cent to US$3,051.90.
At least 91 Palestinians were killed and dozens wounded in airstrikes across Gaza on Thursday after Israel resumed bombing and ground operations, the enclave’s health ministry said, effectively ditching a two-month-old ceasefire.
The Trump administration’s initial policies, including extensive import tariffs, appear to have tilted the US economy towards slower growth and at least temporarily higher inflation, Federal Reserve chair Jerome Powell said on Wednesday.
On Wednesday, the Fed held its benchmark overnight rate steady in the 4.25 to 4.5 per cent range. Policymakers expect the central bank to deliver two quarter-percentage-point rate cuts by year-end.
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A whirlwind of economic and geopolitical turbulence has propelled gold to dazzling new heights in 2025, pushing it to 16 record highs, with four beyond the crucial mark of US$3,000 per ounce.
Market jitters over tariff uncertainty, expectations of interest rate cuts and the rekindling of Middle Eastern tensions – sparked by Israel’s airstrikes in Gaza – have all fuelled the record rally.
Non-yielding gold is historically considered a hedge against geopolitical and economic uncertainties, and thrives in a low interest rate environment.
Spot silver fell 0.3 per cent to US$33.45 an ounce, platinum firmed 0.1 per cent to US$985.55, and palladium eased 0.2 per cent to US$950.47. REUTERS
