Gold climbs to record high as Fed signals two rate cuts in 2025

Gold soared to a record high on Thursday, as the Federal Reserve hinted at a possible easing of interest rates by half a percentage point by year-end, which further fostered bullion's appeal amid ongoing geopolitical and economic woes.

FUNDAMENTALS

* Spot gold rose 0.2% to $3,052.92 an ounce as of 0030 GMT. Bullion reached an all-time high of $3,055.31 per ounce earlier in the session.

* U.S. gold futures gained 0.7% to $3,061.00.

* The Fed announced on Wednesday it had held its benchmark overnight rate steady in the 4.25%-4.50% range.

* However, Fed policymakers still expect the central bank to deliver two quarter-percentage-point rate cuts by the end of this year, matching their projection from December.

* The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said on Wednesday.

* U.S. President Donald Trump's tariffs, which have flared trade tensions, are widely thought to be detrimental to economic growth and potentially stoke inflation.

* The uncertainty related to the tariffs, the possibility of rate cuts and the resumption of tensions in the Middle East, after Israel launched airstrikes in Gaza, have all contributed to gold's record rally, prompting the bullion to notch 16 record highs so far in 2025, four of them above the $3,000/oz milestone.

* Israeli airstrikes pounded Gaza and killed more than 400 people on Tuesday, Palestinian health authorities said, shattering nearly two months of relative calm since a ceasefire began, as Israel warned the onslaught was "just the beginning".

* Non-yielding gold is historically considered a hedge against geopolitical and economic uncertainties, and thrives in a low interest rate environment.

* Spot silver firmed 0.1% to $33.84 an ounce, platinum added 0.4% to $996.80, and palladium edged up 0.1% to $959.65.

DATA/EVENTS (GMT) 0100 China Loan Prime Rate 1Y, Loan Prime Rate 5Y Mar 0700 UK Claimant Count Unem Chng Feb 0700 UK ILO Unemployment Rate Jan 0700 UK HMRC Payrolls Change Feb 1200 UK BOE Bank Rate Mar 1230 US Initial Jobless Clm 15 Mar, w/e 1230 US Philly Fed Business Indx Mar 1400 US Existing Home Sales Feb 1430 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 14 Mar.