Gold prices surged to a new record of approximately $3,050 per ounce. This increase is fueled by expectations of US interest rate cuts, driven by the Federal Reserve’s projections and heightened safe-haven demand due to escalating geopolitical tensions and persistent trade concerns.
- Gold reached a new record high of around $3,050 per ounce.
- The Federal Reserve anticipates cutting rates by 50 bps this year.
- Tensions escalated in the Middle East with renewed conflict in Gaza.
- The US continues striking Houthi targets in Yemen.
- New tariffs are set to take effect in April.
This suggests a climate where investors are seeking refuge in gold due to economic uncertainty and international instability. The expectation of lower interest rates makes gold, which doesn’t provide a yield, more attractive compared to other investments. The ongoing geopolitical risks further strengthen gold’s appeal as a safe haven. Trade disputes and tariffs create further economic uncertainty which investors seek to mitigate through gold investments.