Gold Holds Near Record High As Geopolitical Worries Remain
Gold held near a record high as fresh geopolitical tensions supported demand for the precious asset, with traders looking for past signs that the Federal Reserve is in no rush to cut interest rates.
Bullion traded near $2,935 an ounce after hitting an all-time high in the previous session before ending little changed amid growing concerns that President Donald Trump could end U.S. support for Ukraine after Russia invaded the neighboring country in 2022. The U.S. leader said on social media Wednesday that Volodymyr Zelenskiy “better move faster” to reach a deal with Russia “or he won’t have a country left.”
The precious metal has hit back-to-back records this year, having risen 27% through 2024, amid growing concerns over Trump’s increasingly disruptive trade and geopolitical agenda. Goldman Sachs Group Inc. this week raised its year-end target to $3,100 an ounce, saying stronger-than-expected central bank purchases would be a key driver of prices.
Elsewhere, investors were digesting the latest Fed minutes, which reiterated U.S. policymakers’ cautious stance on interest rates amid stubborn inflation and economic uncertainty. Lower borrowing costs tend to benefit bullion, as it doesn’t pay interest.
Spot gold edged up 0.1% to $2,935.68 an ounce as of 7:53 a.m. in Singapore. The Bloomberg Dollar Spot Index was steady. Silver and palladium were little changed, while platinum fell.
Source: Bloomberg
