Gold prices rose on Monday, hitting a record high of $3,004.86 last week, as investors focus on the US Federal Reserve’s meeting this week. Analyst Ross Norman predicts prices will edge higher, citing “fear of missing out” trades supporting the market. However, US Treasury Secretary Scott Bessent warned of no guarantees against a recession in the US due to trade policies.
The Fed is expected to keep interest rates on hold after reducing them by 100 basis points since September. Gold tends to perform well in low-interest-rate environments and as a hedge against economic uncertainty and inflation. The market’s focus shifts from geopolitical uncertainty to the Fed’s monetary policy meeting, which may provide clues on the interest rate trajectory.
Spot gold added 0.2% to $2,991.13 an ounce, while US gold futures eased 0.1% to $2,998.90. Silver shed 0.2% to $33.71 an ounce, platinum steadied at $993.01, and palladium gained 0.5% to $969.78.
Source: https://www.reuters.com/markets/commodities/gold-edges-higher-geopolitical-economic-concerns-linger-2025-03-17