Gold edges higher on safe-haven demand, Fed optimism
Mon Mar 24 2025
Gold edged higher on Monday as concerns over U.S. President Donald Trump's impending reciprocal tariffs and the potential for interest rate cuts by the Federal Reserve this year supported bullion's safe-haven appeal.
FUNDAMENTALS
* Spot gold was up 0.1% at $3,025.12 an ounce, as of 0005 GMT. U.S. gold futures rose 0.3% to $3,030.70.
* Gold reached a record high of $3,057.21 per ounce last Thursday as trade
tensions fuelled safe-haven
demand. Zero-yield bullion is seen as a hedge against geopolitical
turmoil, economic uncertainties, and inflation.
* Tariffs will remain in the spotlight as Trump announced a wave of reciprocal tariffs to take effect on April 2, which is likely to fuel inflation and hinder economic growth.
* Last week, the Fed held its benchmark rate steady in the 4.25%-4.50% range, as expected. Policymakers see the U.S. central bank delivering two quarter-percentage-point cuts by the year-end.
* However, New York Federal Reserve President John Williams said on Friday the
U.S. central bank's monetary policy is in the right place given the myriad
uncertainties facing the economy, noting that there's no urgency to make any
changes to interest rates.
* On physical front, discounts offered on gold in India touched a more than
eight-month high last week as demand slumped after spot prices surged past
record highs.
* Spot silver gained 0.1% to $33.06 an ounce, platinum firmed 0.7% to $981.25
and palladium rose 0.5% to $962.54.