Gold prices rose to record highs in Asian trade on Thursday, benefiting from a softer dollar as the Federal Reserve still signaled at least two more interest rate cuts this year.
The yellow metal extended a run of recent gains, as it continued to benefit from heightened safe haven demand due to the collapse of the Israel-Hamas ceasefire, sluggish Russia-Ukraine peace negotiations, and increased uncertainty over the U.S. economy under President Donald Trump.
Spot gold rose 0.2% to a record high of $2,057.36 an ounce, while gold futures expiring in April hit a peak of $3,065.09 an ounce.
The yellow metal's latest round of gains came amid weakness in the dollar and Treasury yields, after Wednesday's Fed meeting.
The central bank left interest rates unchanged as widely expected, while also maintaining forecasts that interest rates will fall by 50 basis points by end-2025.
This forecast came even as the Fed projected higher inflation and slowing economic growth this year.
But the Fed's overall messaging still remained cautious, amid growing uncertainty over the economic impact of Trump's policies. This uncertainty had been a major driver of gold prices in recent weeks, as extended losses in risk-driven assets drove investors into safe havens.
Source : Investing.com
