Gold soars to new record as global tensions escalate
Gold surged to a historic high as geopolitical uncertainties fueled demand for safe-haven assets, overshadowing indications from the Federal Reserve that it’s not planning to reduce interest rates anytime soon.
Bullion hit an all-time high of $2,947.23 an ounce, surpassing the previous record reached Wednesday, News.Az reports, citing Bloomberg.
There’s been growing fears that President Donald Trump could abandon American support for Ukraine after Russia invaded its neighbor in 2022. The US leader on Wednesday said on social media that Volodymyr Zelenskiy had “better move fast” to reach a deal with Russia “or he is not going to have a country left.”
The precious metal has hit successive records this year, after climbing 27% in 2024, amid mounting concerns over Trump’s consistently disruptive trade and geopolitical agendas. Goldman Sachs Group Inc. this week raised its year-end target to $3,100 an ounce, saying that stronger-than-expected central-bank buying would be a key driver for prices.
Elsewhere, investors were parsing the latest Fed minutes, which reiterated US policymakers’ cautious stance on interest rates amid stubborn inflation and economic uncertainties. Lower borrowing costs tend to benefit bullion, as it doesn’t pay interest.
Spot gold edged up 0.4% to $2,945.68 an ounce as of 2:16 p.m. in Singapore. The Bloomberg Dollar Spot Index was down 0.2%. Silver (SI=F), palladium (PA=F) and platinum (PL=F) climbed.
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