Gold Hits Record High as Safe Haven Demand Surges

Gold prices climbed to a fresh record high in Asian trading on Wednesday, supported by geopolitical tensions in the Middle East, uncertainty over U.S. trade policies, and an upcoming Federal Reserve decision.

Key Drivers of Gold’s Rally:

• Geopolitical Tensions:
  • The collapse of the Israel-Hamas ceasefire increased safe-haven demand.
  • Limited progress in Russia-Ukraine ceasefire talks also added to market jitters.
• U.S. Trade Policy Concerns:
  • President Donald Trump’s threats of higher tariffs, particularly on Canada and Mexico, have raised fears of global trade disruptions and higher U.S. inflation.
  • Market uncertainty over potential new tariff measures in April has dampened risk appetite.
• Weaker U.S. Dollar:
  • Concerns over a potential U.S. recession and tariff-related risks pushed the dollar lower, making gold more attractive.
• Federal Reserve Meeting in Focus:
  • The Fed is expected to hold rates steady at 4.5% later on Wednesday.
  • Investors await the Fed’s updated economic projections for clues on the U.S. economy’s trajectory.

Gold & Other Precious Metals Performance:

• Spot gold rose 0.1% to a record $3,039.00 an ounce.
• Gold futures (May contract) reached $3,046.12 an ounce.
• Platinum futures fell 0.4% to $1,016.90 an ounce.
• Silver futures slipped 0.5% to $34.55 an ounce.

With geopolitical uncertainty persisting and economic risks looming, gold remains a preferred safe-haven asset for investors. The market now awaits the Fed’s policy stance for further direction.