BENGALURU- Gold rose to an all-time high on Thursday as the Federal Reserve hinted at two possible interest rate cuts this year, bolstering bullion’s appeal amid ongoing geopolitical and economic woes.
Spot gold was up 0.1 percent at $3,049.89 an ounce as of 0210 GMT. Bullion reached an all-time high of $3,055.96 earlier in the session.
US gold futures gained 0.6 percent to $3,058.40.
Gold is driven by “a lot of uncertain market situations, geopolitical tensions, weaker US dollar, and expectations that interest rates will be cut later,” said Dick Poon, general manager at Heraeus Metals Hong Kong Ltd.
The Fed held its benchmark overnight rate steady in the 4.25 percent-4.50 percent range on Wednesday. Policymakers expect the central bank to deliver two quarter-percentage-point rate cuts by the end of 2025.
The Trump administration’s initial policies, including extensive import tariffs, appear to have tilted the US economy towards slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said.
