Gold Steady Near Record High as Economic, Geopolitical Risks Ease
Gold was steady in early Asian trade after hitting a series of record highs in the previous session as rising economic and geopolitical risks supported demand for the safe-haven asset.
Bullion held above $2,865 an ounce after rising 0.9% on Wednesday after President Donald Trump said the U.S. could take over Gaza, a comment his aides sought to play down, and that he wanted to start working on a new nuclear deal with Iran. Washington is also expected to present a plan to end Russia’s war in Ukraine next week.
Concerns about the impact of the U.S.-China trade war, as well as the possibility that Trump will impose tariffs on other countries, are also supporting bullion’s role as a store of value in uncertain times. Gold has gained 9% this year, and interest in the precious metal from global central banks shows no sign of slowing, the World Gold Council said.
Driving Demand in 2025 The market is also waiting to see if there will be a ripple effect for the U.S. economy and monetary policy if tariffs reignite inflation. A report on Wednesday showed weaker-than-expected orders for services, suggesting activity could slow in coming months as Americans tighten their belts. Trade war fears have also rattled the precious metals market, with signs of rising demand for gold as primary dealers look to shift metal to the U.S. before any tariffs are imposed.
Spot gold was steady at $2,868.15 an ounce at 8:33 a.m. in Singapore, after hitting an all-time high of $2,882.36 on Wednesday. The Bloomberg Dollar Spot Index was little changed, having fallen 0.9% over the previous two sessions. Silver, platinum and palladium all rose.
Source: Bloomberg
