Gold prices stabilized at $3,044.44 an ounce on Thursday after hitting a new all-time high of $3,057.21 earlier in the day.
This marks the 16th record high for gold this year, with four peaks above the significant $3,000 threshold. The surge is primarily driven by the Federal Reserve signaling likely interest rate cuts later in 2025, with traders pricing in about 66 basis points of easing this year. Additionally, ongoing geopolitical tensions and economic uncertainty have increased safe-haven demand for the precious metal.
While the strengthening U.S. dollar (up 0.3%) is creating some downward pressure by making gold more expensive for foreign purchasers, analyst Peter Fertig from Quantitative Commodity Research suggests that strong central bank demand and continuing geopolitical factors could maintain gold’s upward momentum. Trump’s tariffs, widely considered inflationary, have also contributed to gold’s remarkable performance this year.