Gold Climbs to Record on Fears for US Economy, Mideast Tensions
Gold touched a fresh all-time high above $3,000 an ounce as investors weighed US data that fueled concerns about an economic slowdown, while an escalation in Middle East tensions further underscored the precious metal’s haven appeal.
Bullion edged slightly higher — following a 0.6% gain on Monday — after Israel on Tuesday said it launched military strikes on Hamas targets in Gaza, a move that threatens to undermine a shaky truce. Palestinian residents reported multiple Israeli airstrikes on several parts of the Gaza Strip.
Traders were also digesting US retail sales data, which rose less than forecast in February, according to a report on Monday. Yields on 10-year Treasuries fell, also helping to boost non-interest bearing gold.
While the figures pointed to weak spending on goods, there was no sign of a severe pullback and the data did little to alter traders’ bets on expectations for Federal Reserve rate cuts. Still, companies, investors and economists remain cautious as consumer sentiment sours and signs of financial stress mount, amid risks of escalating trade wars sparked by US President Donald Trump.
The gloomier outlook for both the US and global economy has underscored bullion’s role as a store of value in uncertain times. The metal is up more than 14% so far this year, extending its strong annual advance in 2024. Several major banks have hoisted their price targets for this year higher in recent weeks.
Spot gold was up 0.1% to $3,011.65 an ounce at 11:08 a.m. in Singapore, after climbing beyond $3,005 an ounce for the first time. The Bloomberg Dollar Spot Index was up 0.1%. Silver was flat, while platinum and palladium edged up.
Source : Bloomberg
