Gold prices rose slightly to record highs during Asian trading on Wednesday. Demand for the yellow metal continued to be supported by renewed geopolitical turmoil in the Middle East and concerns over trade tariffs.
Investors remained largely cautious ahead of the conclusion of the Federal Reserve meeting later today. This meeting is expected to provide further insight into the US economic situation.
Last week, gold rose sharply as risk appetite declined due to US President Donald Trump’s threat to impose higher tariffs. Fears of a US recession also escalated. A weaker US dollar also contributed to gold’s strength.
Spot gold reached a new record high, rising 0.1% to $3,039.00 per ounce. Gold futures expiring in May also rose 0.1% to $3,046.12 per ounce. On the other hand, the Bank of Japan’s meeting did not result in major changes, while the Bank of England is expected to leave interest rates unchanged later today.
Escalating Geopolitical Tensions Push Gold to a New Record High
On Tuesday, gold hit an all-time high after the collapse of a ceasefire between Israel and Hamas, heightening tensions in the Middle East. Limited progress in ceasefire talks between Russia and Ukraine also boosted demand for gold as a safe haven.
Gold Rises as Fed Rate Decision Approaches
The Federal Reserve is widely expected to keep interest rates at 4.5% after concluding its meeting on Wednesday. This is due to continued economic uncertainty in the United States due to President Trump’s economic policies. Bank officials have indicated that there is little expectation of additional rate cuts in the near term.
The Fed is also expected to release an updated summary of economic projections, which will provide more details on the US economic outlook going forward.
Tariffs Raise Concerns About the US Economy
Trump’s threats to impose higher tariffs, particularly on Canada and Mexico, have raised doubts about the future of the US economy. The US president has warned that he may impose new tariffs as early as next April.
Markets fear that higher tariffs will disrupt global trade, potentially fueling inflation in the United States and hampering domestic economic growth.
Other Metals Decline: Platinum and Silver
Among other precious metals, platinum and silver prices retreated slightly after recent gains. Platinum futures fell 0.4% to $1,016.90 per ounce, while silver futures fell 0.5% to $34.55 per ounce.
Copper Prices Rise as Focus Turns to Chinese Stimulus
In industrial metals, copper prices stabilized after a series of strong gains in recent sessions. This came amid growing optimism about China, the world’s largest copper importer.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,901.85 per ton, while May copper futures rose 0.3% to $5.0213 per pound.
China recently announced new fiscal measures aimed at boosting private spending and supporting the economy, spurring optimism about Beijing’s growth prospects in 2025. Improved economic conditions in China are expected to boost demand for copper.
Gold: New Record High Thanks to Safe-Haven Demand
Gold continued its gains over the past week, hitting a record high of $3,038.33 per ounce on March 18. The price closed up 1.14% at $3,034.13, thanks to increased demand for gold as a safe haven amid economic and geopolitical tensions. Concerns over President Trump’s economic decisions, in addition to geopolitical concerns, have boosted demand for gold. Gold traded between $2,999 and $3,038.33, achieving a historic milestone by closing above $3,000 per ounce for the first time.
Economic developments contribute to gold’s rise.
The main driver behind the significant rise in The yellow metal prices is ongoing economic uncertainty and growing fears of a recession. In recent days, US Treasury Secretary Scott Bessent acknowledged the possibility of an economic recession. Economic reports also showed weak retail sales and factory activity in New York State.
Gold prices are expected to continue their upward trend in the coming period. Gold is expected to see further gains if optimism about avoiding a recession persists and if the US dollar continues to weaken.
Experts expect the price of The yellow metal to rise above $3,000 per ounce. There is also the potential for increased demand for gold from China, which plays a pivotal role in determining global market movements.
April Forecast: Further Gold Price Rallies
Based on technical analysis, many analysts expect gold to surpass $3,200 by April. This rise is likely to prompt some investors to take advantage of record The yellow metal price movements.
Gold and Silver Forecast: Continued Rise
Reports predict that silver will continue its upward trend, with the possibility of surpassing $35 per ounce. Silver could reach $40 by April. There is also a possibility of silver rising to $50 in the short term.
Gold ETF Outlook
As gold prices continue to rise, experts expect increased flow of funds into The yellow metal ETFs. Experts estimate that gold ETF holdings could grow significantly in the coming months, potentially leading to further increases in gold prices.
In conclusion, gold is one of the most attractive assets for investors amid economic and geopolitical tensions. The yellow metal is expected to continue achieving further gains in the coming period, especially with increasing economic pressures and the possibility of a global recession.
