FX.co ★ Gold Set for Third Weekly Gain

Gold maintained its strong position, trading at approximately $3,030 per ounce on Friday, hovering near its all-time highs and poised for a third consecutive weekly increase. This upward trajectory is fueled by dovish cues from the Federal Reserve and an increased demand for safe-haven assets. On Wednesday, the Fed recognized the heightening economic uncertainties and reaffirmed its strategy to implement two interest rate cuts within the current year, consequently favoring gold, which does not yield interest. Fed Chairman Powell dismissed the impact of President Trump's tariffs on inflation as "temporary", though he emphasized that there is no immediate need to lower rates. Concurrently, the Middle East saw rising tensions: Israel intensified its Gaza operations, Hamas targeted Tel Aviv, and the US persisted in its airstrikes against Houthi positions in Yemen. Additionally, markets are cautious ahead of Trump's April 2 deadline for reciprocal tariffs on countries that have imposed tariffs on American products, exacerbating global trade issues. Since the start of the year, gold has appreciated over 15%.