Gold Pauses Near Record Highs Amid Geopolitical Tensions and Rate Cut Speculations

Gold experienced a slight retreat after reaching another record high on Wednesday amid escalating tensions in the Middle East and expectations of U.S. interest rate cuts, drawing investors towards the safe-haven asset.

Spot gold dipped 0.4% to $2,271.50 per ounce after hitting a peak of $2,288.09 earlier. U.S. gold futures rose 0.5% to $2,292.

Central bank purchases and robust physical demand have contributed to gold's 10% increase this year.

Federal Reserve policymakers suggested the possibility of three rate cuts this year, supporting gold, which typically performs well in low interest rate environments.

Investors await remarks from Fed Chair Jerome Powell for insights on rate cut timing.

Oil prices surged due to geopolitical tensions, while silver rose to $26.24 per ounce, platinum remained stable, and palladium fell to $992.32.