Investing.com-- Gold prices steadied Thursday, remaining near record highs benefiting from a softer dollar as the Federal Reserve signaled the likelihood of at least two more interest rate cuts this year.
At 09:05 ET (13:05 GMT), Spot gold fell 0.2% to $3,040.42 an ounce, dropping from a record high, while gold futures expiring in April gained 0.3% to $3,049.05 an ounce, after having earlier traded at a new record high.
The yellow metal had extended a run of recent gains, as it continued to benefit from heightened safe haven demand due to the collapse of the Israel-Hamas ceasefire, sluggish Russia-Ukraine peace negotiations, and increased uncertainty over the U.S. economy under President Donald Trump.
Gold rises as dollar, yields sink after Fed meeting
The yellow metal’s latest round of gains came amid weakness in the dollar and Treasury yields, after Wednesday’s Fed meeting.
The central bank left interest rates unchanged as widely expected, while also maintaining forecasts that interest rates will fall by 50 basis points by end-2025.
This forecast came even as the Fed projected higher inflation and slowing economic growth this year.
But the Fed’s overall messaging still remained cautious, amid growing uncertainty over the economic impact of Trump’s policies. This uncertainty had been a major driver of gold prices in recent weeks, as extended losses in risk-driven assets drove investors into safe havens.
Trump also called for lower interest rates, as his administration prepares to unveil a swathe of trade tariffs in the coming weeks.
Lower rates are also expected to benefit gold prices, given that they reduce the opportunity cost of investing in non-yielding assets. This trend, coupled with strong safe haven demand, could underpin gold prices through the remainder of the year.
Broader precious metals slipped lower. Platinum futures fell 0.9% to $1,000.60 an ounce, while silver futures dropped 0.6% to $34.005 an ounce.
Copper prices retreat from 2025 highs
Industrial metals slipped slightly after recent strong gains on optimism over Chinese stimulus measures and speculation over Trump’s tariffs.
Benchmark copper futures on the London Metal Exchange fell 0.3% to $9,954.00 a ton, dropping from a five-month high, while May copper futures fell 0.3% to $5.0870 a pound, slipping from a 10-month peak.
Copper saw a strong run-up over the past month as Trump threatened to impose tariffs on U.S. copper imports- a scenario that could severely limit domestic supplies, driving up prices.
More recently, copper was boosted by optimism over more stimulus measures in top importer China. Beijing outlined plans for increased fiscal support this year, especially for consumer spending.
(Ambar Warrick contributed to his article.)