Gold hovers near US$3,000-mark ahead of US rate decision

[BENGALURU] Gold held steady near the US$3,000 level mark on Tuesday (Mar 18), hovering near an all-time high hit last week, as investors awaited the US Federal Reserve’s policy decision to gauge the country’s economic outlook amid tariffs and trade woes.

Spot gold was flat at US$3,002.28 an ounce (oz) as at 0025 GMT. Bullion rose above the key US$3,000/oz milestone to notch a record high at US$3,004.86 on Friday.

US gold futures rose 0.2 per cent to US$3,012.00.

New economic projections from Fed officials this week will provide the most tangible evidence yet of how US central bankers view the likely impact of Trump administration policies that have clouded a previously solid economic outlook.

Top forecasters have marked down their expectations for growth this year, upped the perceived risk of recession and anticipate higher inflation as US President Donald Trump’s tariffs filter through global markets.

The Fed is expected to hold its benchmark interest rate steady in the 4.25 to 4.5 per cent range at the end of its two-day policy meeting on Wednesday.

Meanwhile, Trump said he would speak to Russia’s Vladimir Putin on Tuesday morning about ending the war in Ukraine.

On Monday, Trump said he would hold Iran responsible for any attacks carried out by the Houthi group that it backs in Yemen, as his administration expanded the biggest US military operation in the Middle East since Trump returned to the White House.

An Israeli air strike killed three Palestinians in Gaza on Monday as they tried to gather firewood, medics said, with no sign of progress in renewed talks on sustaining a ceasefire deal between Israel and Hamas.

Non-yielding gold is considered a hedge against political risks and inflation and thrives in a low interest rate environment.

Spot silver gained 0.1 per cent to US$33.86 an ounce, platinum added 0.4 per cent to US$1,004.25 and palladium rose 0.5 per cent to US$969.77. REUTERS