Gold Hovers Near Record $3,000 Mark Ahead of US Fed Rate Decision

Investors await US Federal Reserve’s policy decision as gold prices remain stable, nearing an all-time high of $3,004.86.

March 18, 2025 | Global Markets Update

Gold prices remained stable near the $3,000 per ounce mark on Tuesday as investors awaited the US Federal Reserve’s interest rate decision. The metal has been on a record-breaking rally amid economic uncertainty, geopolitical tensions, and inflation risks.

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Key Market Highlights:

1. Gold Prices Hold Firm:
   • Spot gold traded flat at $3,002.28 per ounce as of 0025 GMT.
   • US gold futures climbed 0.2% to $3,012.00.
   • Gold hit a record high of $3,004.86 last Friday.
2. US Federal Reserve Policy Outlook:
   • The Fed is expected to keep interest rates steady in the 4.25%-4.50% range at the conclusion of its two-day meeting on Wednesday.
   • Economic projections will provide insight into how the Fed sees Trump’s tariff policies affecting growth, inflation, and recession risks.
3. Trump-Putin Talks on Ukraine War:
   • US President Donald Trump will speak with Russian President Vladimir Putin on Tuesday regarding a possible ceasefire.
4. Geopolitical Tensions in the Middle East:
   • Trump warned Iran against Houthi-backed attacks in Yemen, expanding US military operations in the region.
   • Israeli airstrikes killed three Palestinians in Gaza as ceasefire talks between Israel and Hamas stalled.
5. Gold as a Safe-Haven Asset:
   • With ongoing geopolitical instability and inflation fears, gold remains a key hedge against uncertainty.
   • Gold thrives in a low-interest rate environment and is often seen as a safe-haven asset during economic and political crises.
6. Other Precious Metals Performance:
   • Silver edged 0.1% higher to $33.86 per ounce.
   • Platinum rose 0.4% to $1,004.25 per ounce.
   • Palladium climbed 0.5% to $969.77 per ounce.
7. Upcoming Economic Data to Watch:
   • Germany’s ZEW Economic Sentiment Index (March).
   • US Housing Starts & Industrial Production (February).

Outlook:

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With global market uncertainty, the US Fed decision, and geopolitical risks in focus, gold prices are expected to remain volatile. A dovish Fed stance could further boost gold, while hawkish policy signals may trigger a correction.

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#GoldPrices, #USFed, #MarketUpdate, #GlobalEconomy, #Inflation, #SafeHaven, #InterestRates, #Geopolitics,