PRECIOUS-Gold unchanged near record high as global uncertainties raise demand
March 21 (Reuters) - Gold held steady on Friday to trade below its record high hit in the previous session, supported by safe-haven demand arising from geopolitical and economic uncertainty, while the Federal Reserve's hint at rate cuts this year also fostered appeal.
FUNDAMENTALS
* Spot gold XAU= was flat at $3,043.89 an ounce as of 0030 GMT. Bullion reached an all-time high of $3,057.21 per ounce in the previous session. It has climbed around 2% so far for the week.
* U.S. gold futures GCcv1 rose 0.3% to $3,051.90.
* At least 91 Palestinians were killed and dozens wounded in airstrikes across Gaza on Thursday after Israel resumed bombing and ground operations, the enclave's health ministry said, effectively ditching a two-month-old ceasefire.
* The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said on Wednesday.
* On Wednesday, the Fed held its benchmark overnight rate steady in the 4.25%-4.50% range. Policymakers expect the central bank to deliver two quarter-percentage-point rate cuts by year-end.
* A whirlwind of economic and geopolitical turbulence has propelled gold to dazzling new heights in 2025, pushing it to 16 record highs, with four beyond the crucial mark of $3,000 per ounce.
* Market jitters over tariff uncertainty, expectations of interest rate cuts and the rekindling of Middle Eastern tensions — sparked by Israel's airstrikes in Gaza — have all fueled the record rally.
* Non-yielding gold is historically considered a hedge against geopolitical and economic uncertainties, and thrives in a low interest rate environment.
* Spot silver XAG= fell 0.3% to $33.45 an ounce, platinum XPT= firmed 0.1% to $985.55, and palladium XPD= eased 0.2% to $950.47.
DATA/EVENTS (GMT)
0745 France Business Climate Mfg, Overall March
1500 EU Consumer Confid. Flash March
Related Articles
Tempus AI: Architecting the Next Era of Intelligent Diagnostics
TradingKey - Tempus AI (TEM) is leading a tectonic transformation of how the healthcare system utilizes diagnostics, not simply ordering tests, but correlating them with patient-level data and incorporating AI to make all insight tailored to each individual.
Why Rigetti Is Positioning Itself for the Next Compute Revolution
TradingKey - Being a full-stack innovator in the race to achieve quantum advantage, Rigetti Computing (RGTI) has developed a vertically integrated superconducting quantum computing platform just when the industry is still in its early stage and undergoing tremendous growth.
Q1 2025 Market Forecast: What Bank Results Indicate About the Direction of the Stock Market
TradingKey - As the first quarter of 2025 is wrapping up, investors are piecing together a more detailed view of the next direction of the stock market.
VIX Off Its Highs — Is a U.S. Market Rebound Taking Shape?
TradingKey - The Cboe Volatility Index (VIX), widely regarded as Wall Street’s "fear gauge," has dropped sharply after briefly surging above 50 last week. It has since pulled back to the 30 range.
[Reuters Breakingviews] Trump kicks all of Asia into the China tariff boat
HONG KONG, April 3 (Reuters Breakingviews) - Donald Trump’s second trade war is a battle of one against all. Reciprocal tariffs announced on Wednesday by the White House hit China with a hike of 34 percentage points, taking the fresh levies on exports from the People’s Republic up 5...