Gold prices rose during trading on Thursday to a new record high, approaching $3,000 per ounce, supported by rising uncertainty over tariffs and expectations of monetary policy easing by the US Federal Reserve.
Spot gold prices rose 1.6% to $2,979.76 per ounce, after hitting their 12th record high of the year earlier in the session.
Prices of the metal have risen about 14% since the beginning of the year, following a strong 27% increase in 2024.
US gold futures rose 1.5% to settle at $2,991.30.
"Gold is in a long-term bull market. We expect prices to range between $3,000 and $3,200 this year," said Alex Epkarian, chief operating officer of Allegiance Gold.
US President Donald Trump's erratic trade policies have supported gold, which is considered a preferred asset for investors during times of geopolitical and economic turmoil. US Commerce Secretary Howard Lutnick said that a recession "would be helpful" for Trump's economic policies.
The next big event is the Federal Reserve's monetary policy meeting next Wednesday. The central bank is expected to keep its benchmark overnight interest rate at a range of 4.25%-4.50%.
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Prices in Egypt
The price of 24-karat gold rose to EGP 4,806 per gram, despite fluctuations in the global price of an ounce.
The price of 21-k, the most popular type of gold in the market, rose to EGP 4,205 per gram.
Meanwhile, the price of 18-karat gold saw a new increase, reaching approximately EGP 3,605 per gram, excluding workmanship.
The price of the gold coin in Egypt rose in the market to EGP 33,640, excluding any other costs.
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"It's impossible to model the potential impact of tariffs and trade threats, forcing the Fed to evaluate economic data to help determine its next move," said John Ciampaglia, CEO of Sprott Asset Management.
He added, "We believe the Fed is stuck in a wait-and-see mode."
Traders expect the central bank to resume rate cuts in June, according to the CME's FEDWATCH tool.
This comes after US Labor Department data revealed that producer prices unexpectedly held steady in February, while the Consumer Price Index rose 0.2% last month after accelerating 0.5% in January.
"Strong demand for exchange-traded funds (ETFs) and continued central bank buying amid geopolitical uncertainty and ongoing uncertainty surrounding tariff changes have contributed to increased appetite for gold," said Suki Cooper, an analyst at Standard Chartered.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, announced that its holdings of the metal rose to 907.82 metric tons on February 25, the highest level since August 2023.
This coincides with China's continued gold purchases for the fourth consecutive month in February, according to data from the People's Bank of China.
Spot silver prices rose 1.4% to $33.69 per ounce. Platinum rose 0.6% to $990.25, while palladium rose 0.9% to $956.99.
"A strong break above $33.30 could open the door for silver to reach $34," said Lukman Otunuga, senior research analyst at FXTM.
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