On Thursday, gold prices hit a new historical high, with spot gold reaching a high of $3055.96 per ounce before slightly falling back and still rising by 0.1% for the day. Meanwhile, US gold futures rose 0.6% to $3058.40 per ounce.

Gold is supported by multiple factors, including market uncertainty, geopolitical tensions, a weakening US dollar, and market expectations for interest rate cuts, "said Dick Poon, General Manager of Heraeus Metals Hong Kong Ltd.

The Federal Reserve maintained interest rates in the range of 4.25% -4.50% at its meeting on Wednesday and expects to make two 25 basis point rate cuts before the end of 2025. This has increased market expectations for loose monetary policy, thereby boosting the attractiveness of gold.

Trade concerns intensify, driving demand for safe haven

The uncertainty of trade policies has also driven the market's demand for safe haven gold. According to market research, the import tariff policies implemented by the United States earlier have slowed down economic growth and pushed up inflation levels in the short term.

Federal Reserve Chairman Powell stated that these policies may have adverse effects on the economy and exacerbate market concerns about the future economic outlook.

Due to trade concerns, expectations of interest rate cuts, and tensions in the Middle East, the gold market has shown strong upward momentum, reaching a historic high 16 times this year, with 4 times breaking through the $3000 mark.

Geopolitical tensions intensify, gold prices supported

The latest news shows that the Israeli army has resumed ground operations in central and southern Gaza, causing at least 48 deaths in airstrikes. The rising geopolitical risks have further boosted the attractiveness of gold as a safe haven asset.

Given the excellent performance of gold in the first quarter, the possibility of a short-term technical correction is not ruled out, "said Nicholas Frappell, Global Institutional Market Head at ABC Refinery

However, so far, the correction in gold prices has been relatively small, and the market remains strongly supported. In the short term, $3090-3100 may form a new resistance level.