Gold reached a new record on Thursday, driven by expectations of US interest rate cuts and ongoing geopolitical tensions.
Spot gold rose 0.1% to $3,049.89 an ounce as of 0210 GMT after hitting an all-time high of $3,055.96 earlier in the session. US gold futures climbed 0.6% to $3,058.40.
The rally followed the Federal Reserve’s decision to hold rates steady in the 4.25%-4.50% range and signal two potential quarter-point cuts before the end of 2025. The prospect of lower borrowing costs supports non-yielding assets like gold, which has now logged 16 record highs in 2025, including four sessions above the $3,000 mark.
The price surge is also being fuelled by broader macroeconomic concerns, including a weaker US dollar and heightened geopolitical risk. The Israeli military resumed operations in Gaza, with reports of airstrikes killing at least 48 people. These developments have increased demand for safe-haven assets.
Federal Reserve Chair Jerome Powell commented that early Trump-era trade tariffs had contributed to slower economic growth and temporarily higher inflation. The uncertainty over future trade policy has added to inflation concerns and boosted gold’s appeal.
Analysts say resistance could emerge around $3,090 to $3,100, although recent pullbacks have been limited.
Other precious metals traded narrowly. Spot silver was unchanged at $33.81 an ounce, platinum rose 0.1% to $994.05, and palladium edged up 0.1% to $957.42.
Gold is up more than 14% year-to-date, outperforming major equity indices and other commodities as investors respond to macro risks and shifting central bank policy outlooks.
