Gold surges to all-time peak ahead of Fed rate decision

Gold bars

Gold prices added more than $20 today, March 18, hitting a new record peak, given tensions in the Middle East and concerns about the impact of US President Donald Trump's hardline trade policies on economic growth.

April gold futures elevated by 0.68%, or $20.50, to $3,026.60 an ounce at 10:45 am Makkah time. Spot prices also rose 0.53%, or $16, to $3,016.60 apiece.

Likewise, silver futures for May delivery rose 0.94% to $34.63 per ounce, with platinum spot prices also up 0.18% to $1,006.79 an ounce.

This came as the US dollar index, which gauges the greenback’s strength against a basket of six major currencies, held steady at 103.45 points.

If gold sustains its position above $3,000/ounce in the coming weeks, additional bullion buying could be triggered, particularly from derivatives contracts, according to a report by the World Gold Council (WGC).

ANZ Bank raised its three-month gold price forecast to $3,100 an ounce and its six-month estimate to $3,200, citing escalating geopolitical and trade tensions, monetary policy easing, and strong central bank purchases, Reuters reported.

Federal Reserve officials will almost certainly keep their key rate unchanged at their monetary policy meeting scheduled to begin later today and conclude tomorrow.

During the meeting, policymakers are set to unveil new economic projections that could provide the most tangible evidence yet of how US central bankers view the likely impact of Trump’s policies that have clouded a previously solid economic outlook.