Singapore March 20 2025: Gold rose to an all-time high on Thursday as the U.S. Federal Reserve hinted at two possible interest rate cuts this year, bolstering bullion’s appeal amid ongoing geopolitical and economic tensions.
Spot gold was little changed at $3,048.37 an ounce as of 0350 GMT, after hitting an all-time high of $3,055.96 earlier in the session.
U.S. gold futures gained 0.5% to $3,056.50.
Gold is driven by “a lot of uncertain market situations, geopolitical tensions, weaker U.S. 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%-4.50% range on Wednesday. Policymakers expect the central bank to deliver two quarter-percentage-point rate cuts by the end of 2025.
Non-yielding gold thrives in a low interest rate environment.
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.
Trump’s tariffs, which have flared trade tensions, are widely thought to be inflationary and detrimental to economic growth.
