Reuters/Denis Balibouse
Gold soared to a record high on Thursday, as the US Federal Reserve hinted at a possible easing of interest rates by half a percentage point by year-end, which further fostered bullion’s appeal amid ongoing geopolitical and economic woes.
Spot gold rose 0.2 percent to $3,052.92 an ounce as of 00:30 GMT. Bullion reached an all-time high of $3,055.31 per ounce earlier in the session.
US gold futures gained 0.7 percent to $3,061.00.
The Fed announced on Wednesday it had held its benchmark overnight rate steady in the 4.25-4.50 percent range.
However, Fed policymakers still expect the central bank to deliver two quarter-percentage-point rate cuts by the end of this year, matching their projection from December.
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.
US President Donald Trump’s tariffs, which have flared trade tensions, are widely thought to be detrimental to economic growth and potentially stoke inflation.
The uncertainty related to the tariffs, the possibility of rate cuts and the resumption of tensions in the Middle East, after Israel launched airstrikes in Gaza, have all contributed to gold’s record rally, prompting the bullion to notch 16 record highs so far in 2025, four of them above the $3,000 per ounce milestone.”.
Non-yielding gold is historically considered a hedge against geopolitical and economic uncertainties, and thrives in a low-interest rate environment.
Spot silver firmed 0.1 percent to $33.84 an ounce, platinum added 0.4 percent to $996.80, and palladium edged up 0.1 percent to $959.65.
