Gold Set for Third Weekly Gain Amid Geopolitical Tensions, Rate Cut Expectations

Gold prices are on track for a third consecutive weekly gain, supported by safe-haven demand amid ongoing geopolitical tensions and economic uncertainties. Spot gold dropped slightly to $3,034.02 an ounce, having reached a record high of $3,057.21 earlier in the week, but still reflects a 1.7% increase this week. Factors contributing to this trend include the anticipation of U.S. Federal Reserve rate cuts later in the year and concerns surrounding President Trump's tariff policies. The Fed has indicated plans for at least two quarter-percentage-point cuts, which typically bolster non-yielding assets like gold. Additionally, escalating tensions in the Middle East, particularly Israeli airstrikes in Gaza, have further fueled investor interest in gold as a safe-haven asset. Meanwhile, other precious metals such as silver, platinum, and palladium are also experiencing declines.