Gold Prices Hit New Record as Fed Maintains Rate Cut Projections

Gold surged to an all-time high in Asian trading on Thursday, bolstered by a weaker U.S. dollar and renewed expectations of interest rate cuts by the Federal Reserve.

The ongoing demand for safe-haven assets continues to drive gold’s momentum, fueled by geopolitical uncertainties, including the breakdown of the Israel-Hamas ceasefire, stalled Russia-Ukraine peace negotiations, and economic instability in the United States under President Donald Trump.

Gold Extends Gains Amid Fed’s Dovish Outlook

Spot gold climbed 0.2% to $2,057.36 per ounce, while April gold futures reached a new peak at $3,065.09 per ounce.

Gold’s latest rally followed the Federal Reserve’s decision to hold interest rates steady at its Wednesday meeting. Despite acknowledging persistent inflation and slower economic growth, the central bank reaffirmed its projection of at least two interest rate cuts by the end of 2025.

The Fed’s cautious stance, coupled with lingering uncertainty over Trump’s trade policies, has further strengthened demand for gold as a safe-haven investment. Trump’s call for lower interest rates and upcoming trade tariffs have only added to the economic uncertainty.

Lower rates tend to favor gold, as they reduce the opportunity cost of holding non-yielding assets. With both economic and geopolitical risks persisting, analysts anticipate that gold could maintain its upward trajectory throughout the year.

Other precious metals also advanced amid dollar weakness:

• Platinum futures rose 0.1% to $1,010.20 per ounce.

• Silver futures gained 0.6%, reaching $34.413 per ounce.

Copper Reaches 2025 Highs on Trade Speculation and China’s Stimulus Plans

Industrial metals saw significant gains, benefiting from a softer dollar and increased optimism over China’s economic policies.

• London Metal Exchange copper futures hit a five-month high of $10,049.40 per ton.

• May copper futures stabilized near a 10-month peak of $5.1443 per pound.

Copper prices have surged over the past month following Trump’s threats to impose tariffs on copper imports, a move that could create supply constraints in the U.S. and push prices even higher.

Additionally, China’s latest economic stimulus measures have further buoyed copper. Beijing recently outlined plans to expand fiscal support, particularly to boost consumer spending and infrastructure investment, reinforcing its demand for industrial metals.

As global markets react to monetary policy shifts and trade tensions, both gold and industrial metals are likely to remain in focus, with further volatility expected in the coming months.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.25% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Disclaimer: This text constitutes marketing communication. It is not any form of investment advice or investment research or an offer for any transactions in financial instrument. Its content does not take into consideration individual circumstances of the readers, their experience or financial situation. The past performance is not a guarantee or prediction of future results.