Market Performance
Gold prices increased to an all-time high on Thursday, driven by economic uncertainties and geopolitical developments. Spot gold increased by 0.1% to $3,050.94 per ounce as of 0520 GMT after reaching a peak of $3,057.21 earlier in the session. Meanwhile, U.S. gold futures rose 0.6%, settling at $3,059.50 per ounce.
Federal Reserve Policy and Economic Outlook
As expected, the U.S. Federal Reserve maintained its benchmark interest rate within the 4.25%-4.50% range. Policymakers anticipate two potential quarter-percentage-point rate cuts by the end of 2025. Lower interest rates generally support gold prices, as the metal does not offer yield and becomes more attractive in a low-rate environment.
Additionally, recent trade policies, including import tariffs, have contributed to inflationary pressures and economic uncertainty. These factors and the possibility of rate cuts have played a role in gold’s upward trajectory.
Geopolitical Influence on Gold Prices
Geopolitical uncertainties have significantly impacted gold prices. Escalating tensions in the Middle East and economic uncertainties have reinforced gold’s status as a store of value. The metal has reached 16 record highs in 2025, with four surpassing the $3,000 mark.
Other Precious Metals Performance
- Silver: Increased by 0.15% to $33.84 per ounce.
- Platinum: Rose by 0.2% to $995.00 per ounce.
- Palladium: Declined by 0.2% to $956.35 per ounce.
Market Summary
Gold’s continued strength highlights its role as a safe-haven asset during economic and geopolitical uncertainty periods. The anticipated rate cuts, inflationary concerns, and trade policies have increased value. As global market conditions evolve, gold’s performance will remain closely watched in the financial landscape.
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