Gold Prices Hold Steady As Investors Await US Fed Decision
Gold prices were little changed on Wednesday (3/19), after hitting a fresh record earlier in the day on continued safe-haven demand, as investors await the US Federal Reserve's interest rate decision due later in the day.
Spot gold was down 0.1% at $3,030.13 an ounce, as of 9:35 a.m. ET (1335 GMT).
Bullion prices jumped to an all-time high of $3,045.24 earlier in the session, marking its 15th record peak this year.
US gold futures were down 0.1% at $3,038.00.
"There is concern that tariffs could fuel inflation, and there is a consensus that even if prices rise on US tariffs, the Federal Reserve will probably start easing policy around the middle of the year," said Bart Melek, head of commodity strategies at TD Securities.
U.S. President Donald Trump raised tariffs on steel and aluminum imports to 25%, which took effect last week, and said he intended new reciprocal and sectoral tariffs to take effect on April 2.
Gold, traditionally seen as a safe haven during times of inflation or economic volatility, has risen more than 15% so far this year.
On the geopolitical front, Russia and Ukraine accused each other of violating a new agreement to refrain from attacking energy targets just hours after U.S. President Donald Trump spoke by phone with Russia’s Vladimir Putin.
Meanwhile, violence has resumed in Gaza, where Israeli airstrikes killed more than 400 people on Tuesday, according to Palestinian health authorities.
“I expect gold to trade about where it is now, around $25,” Melek said.
Investors are now focused on the U.S. central bank’s policy decision due later in the day, followed by comments from Fed Chair Jerome Powell
Traders expect the Fed to keep interest rates unchanged this month, with another rate cut likely in June.
Gold is more attractive when interest rates are low, as it is a non-yielding asset.
Spot silver fell 1.2% to $33.61 an ounce, platinum fell 1.6% to $980.90 and palladium fell 0.8% to $959.20.(Newsmaker23)
Source: Reuters
