Gold was headed for a third straight week of gains on Friday after three consecutive record highs this week, bolstered by the Federal Reserve’s rate cut cues for the year and safe-haven demand amid geopolitical and economic uncertainties.
Spot gold eased 0.3 per cent to USD 3,034.09 an ounce as of 0235 GMT. Bullion reached an all-time high of USD 3,057.21 per ounce on Thursday and has climbed about 2 per cent so far this week.
U.S. gold futures held steady at USD 3,042.60.
“I don’t think we even need to see a trigger per se for gold to hit another record high. All the fundamentals are there for it to keep trending higher,” Capital.com’s financial market analyst Kyle Rodda said.
“I can’t see an imminent correction for gold. But a pull back to the USD 3,000s for a bit of a recharge before extending the uptrend is quite likely.”
On Wednesday, the Fed held its benchmark rate steady in the 4.25 per cent -4.50 per cent range as expected. Policymakers see the central bank delivering two quarter-percentage-point cuts by year-end.
U.S. President Donald Trump’s initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Fed Chair Jerome Powell said after the policy meeting.
Elsewhere, 91 Palestinians were killed in airstrikes across Gaza on Thursday after Israel resumed bombing and ground operations, effectively shredding a two-month-old ceasefire.
A whirlwind of factors, including tariff uncertainty, rate cut expectations and the rekindling of Middle Eastern tensions, have propelled gold to dazzling new heights this year, pushing it to 16 record highs, with four above the crucial USD 3,000 mark.
The non-yielding metal, a hedge against geopolitical and economic turbulence, thrives in a low interest rate environment.
Spot silver fell 0.8 per cent to USD 33.26 an ounce, platinum lost 0.2 per cent to USD 983.10, and palladium shed 0.5 per cent to USD 947.78. All three were poised for weekly losses.
