Gold prices hit record high above $3,050 as Fed maintains rate cut outlook
Gold prices rose to record highs in Asian trade on Thursday, benefiting from a softer dollar as the Federal Reserve still signaled at least two more interest rate cuts this year, News.Az reports citing Investing.
The yellow metal extended a run of recent gains, as it continued to benefit from heightened safe haven demand due to the collapse of the Israel-Hamas ceasefire, sluggish Russia-Ukraine peace negotiations, and increased uncertainty over the U.S. economy under President Donald Trump.
Spot gold rose 0.2% to a record high of $2,057.36 an ounce, while gold futures expiring in April hit a peak of $3,065.09 an ounce.
Gold rises as dollar, yields sink after Fed meeting
The yellow metal’s latest round of gains came amid weakness in the dollar and Treasury yields, after Wednesday’s Fed meeting.
The central bank left interest rates unchanged as widely expected, while also maintaining forecasts that interest rates will fall by 50 basis points by end-2025.
This forecast came even as the Fed projected higher inflation and slowing economic growth this year.
But the Fed’s overall messaging still remained cautious, amid growing uncertainty over the economic impact of Trump’s policies. This uncertainty had been a major driver of gold prices in recent weeks, as extended losses in risk-driven assets drove investors into safe havens.
Trump also called for lower interest rates, as his administration prepares to unveil a swathe of trade tariffs in the coming weeks.
Lower rates are also expected to benefit gold prices, given that they reduce the opportunity cost of investing in non-yielding assets. This trend, coupled with strong safe haven demand, could underpin gold prices through the remainder of the year.
Broader precious metals advanced, aided by a softer dollar. Platinum futures rose 0.1% to $1,010.20 an ounce, while silver futures rose 0.6% to $34.413 an ounce.
Copper prices hit 2025 highs on China cheer, tariff trade
Industrial metals also benefited from a softer dollar, while optimism over Chinese stimulus measures and speculation over Trump’s tariffs also drove gains.
Benchmark copper futures on the London Metal Exchange hit a five-month high of $10,049.40 a ton, while May copper futures steadied near a 10-month peak of $5.1443 a pound.
Copper saw a strong run-up over the past month as Trump threatened to impose tariffs on U.S. copper imports- a scenario that could severely limit domestic supplies, driving up prices.
More recently, copper was boosted by optimism over more stimulus measures in top importer China. Beijing outlined plans for increased fiscal support this year, especially for consumer spending.
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