Trump has begun another trade war. Here's a timeline of how we got here
Canada's leader laments lost friendship with US in town that sheltered stranded Americans after 9/11
Chinese EV giant BYD's fourth-quarter profit leaps 73%
You're an American in another land? Prepare to talk about the why and how of Trump 2.0
Chalk talk: Star power, top teams and No. 5 seeds headline the women's March Madness Sweet 16
Purdue returns to Sweet 16 with 76-62 win over McNeese in March Madness
By Anjana Anil
(Reuters) - Gold touched an all-time high on Thursday as the U.S. Federal Reserve signalled two possible interest rate cuts this year, adding to the bullion's appeal amid ongoing geopolitical and economic tensions.
Spot gold held steady at $3,047.1 an ounce as of 0700 GMT, after hitting a record high of $3,057.21 earlier in the session.
U.S. gold futures gained 0.4% to $3,054.10.
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. [USD/]
On Wednesday, the Fed left its benchmark rate unchanged in the 4.25%-4.50% range, as was widely expected. Policymakers anticipate two quarter-percentage-point cuts by the end of 2025.
Non-yielding bullion thrives in a low interest rate environment.
U.S. President Donald Trump's initial policies, including tariffs, appear to have tilted the U.S. economy towards slower growth and higher inflation, at least temporarily, Fed Chair Jerome Powell said.
Trump's tariffs have flared trade tensions and are widely seen as inflationary and detrimental to economic growth.
The tariff uncertainty, rate cut possibilities and escalating tensions in the Middle East have contributed to gold's rally, prompting it to notch 16 record highs so far in 2025, with four being above the $3,000 milestone.
On Thursday, 37 Palestinians were killed in Israeli airstrikes across Gaza, after Israel resumed its bombing campaign.
"For now, gold's appeal as a safe haven and inflation hedge has further strengthened in light of those geopolitical concerns and tariff uncertainty. We remain constructive on the outlook of gold," said OCBC forex strategist Christopher Wong.
Geopolitical and economic uncertainties underscore gold's role as a store of value.
"Given the very good performance in gold through Q1, I think a correction is not out of the question," said Nicholas Frappell, global head of institutional markets at ABC Refinery.
"So far, corrections have been relatively short-lived and well bid... $3,090-$3,100 may see some resistance."
Spot silver was flat at $33.8 an ounce, platinum fell 0.3% to $989.85. Palladium slipped 1% to $949.50.
(Reporting by Anjana Anil in Bengaluru; Editing by Alan Barona, Varun H K, Sumana Nandy and Rashmi Aich)
