An employee holds one kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Dec. 22, 2023. - Photographer: Chalinee Thirasupa/Bloomberg
Gold prices eased on Friday weighed by a stronger U.S. dollar, although the Federal Reserve's rate cut cues for the year and safe-haven demand amid geopolitical and economic uncertainties set the bullion on track for a third straight weekly gain.
Spot gold fell 0.5% to $3,029.86 an ounce as of 0500 GMT. Bullion reached an all-time high of $3,057.21 per ounce on Thursday and has climbed about 1.5% so far this week.
U.S. gold futures eased 0.2% to $3,037.50.
"Gold is trading down slightly in today's Asia session due to U.S. dollar strength across the board among the major currencies," said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.
On Wednesday, the Fed held its benchmark rate steady in the 4.25%-4.50% range as expected. Policymakers see the central bank delivering two quarter-percentage-point cuts by year-end.
U.S. President Donald Trump's initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Fed Chair Jerome Powell said after the policy meeting.
Elsewhere, 91 Palestinians were killed in airstrikes across Gaza on Thursday after Israel resumed bombing and ground operations, effectively shredding a two-month-old ceasefire.
"All the fundamentals are there for (gold) to keep trending higher," Capital.com's financial market analyst Kyle Rodda said.
"A pull back to the $3,000s for a bit of a recharge before extending the uptrend is quite likely."
A whirlwind of factors, including tariff uncertainty, rate cut expectations and the rekindling of Middle Eastern tensions, have propelled gold to dazzling new heights this year, pushing it to 16 record highs, with four above the crucial $3,000 mark.
The non-yielding metal, a hedge against geopolitical and economic turbulence, thrives in a low interest rate environment.
Spot silver fell 1.2% to $33.13 an ounce, platinum lost 0.4% to $980.75, and palladium shed 0.6% to $946.01. All three were poised for weekly losses. - Reuters
