Gold prices surged to a fresh record high on Tuesday, reaching $3,038.26 per ounce, as tensions in the Middle East and trade uncertainty fueled demand for the safe-haven asset.
The US Federal Reserve is expected to hold interest rates steady on Wednesday, with traders giving nearly a 66% chance of a rate-cut in June. However, rising conflict in Gaza, which has killed over 400 people, and ongoing trade tensions due to US President Donald Trump’s tariff plans are driving investors to seek safe-haven assets like gold.
Gold futures settled 1.2% higher at $3,040.80, with bullion gaining over 15% year-to-date. Analysts attribute the surge in gold prices to the escalating Middle East tensions and trade uncertainties, which have led investors to prioritize safe-haven assets during periods of economic or geopolitical instability.
Other precious metals, such as silver and platinum, also saw price movements, but to a lesser extent. Investors will be watching Trump’s talks with Putin and the Federal Reserve’s monetary policy meeting on Wednesday for further cues on interest rates and market trends.
Source: https://www.reuters.com/markets/commodities/gold-scales-record-peak-rises-above-3000-again-tariff-uncertainty-fuels-safe-2025-03-18