On March 18, international gold prices rose over 1%, staying above $3000. Spot gold increased by 1.05%, closing at $3,032.96 per ounce, after hitting an intraday high of $3,038.26. U.S. futures gained 1.2%, settling at $3,040.80. Gold has continued its strong performance this year, with gains exceeding 15% year-to-date, and has hit record highs fourteen times.
Nicky Shiels, Head of Metals Strategy at MKS PAMP SA, noted that the escalation in the Middle East situation has been a significant factor driving up gold prices recently. Israel's military strikes on Hamas targets in Gaza, resulting in over 400 fatalities, threaten the collapse of a ceasefire agreement, increasing market demand for safe-haven assets and further supporting gold prices.
Additionally, U.S. economic policy is another focal point of market attention. The new round of tariff measures introduced by the Trump administration, including the 25% steel and aluminum tariffs effective in February, and reciprocal and sectoral tariffs planned for April 2, have sparked concerns over global economic growth. Investors are assessing their impact on the precious metals market.
The market is also closely watching the content of the call between Trump and Putin, particularly their stances on the Ukraine issue. Meanwhile, the Federal Reserve is set to announce its latest monetary policy decision on Wednesday. The market widely expects the Fed to keep interest rates unchanged, but investors will scrutinize the meeting statement and Powell's speech to gauge future policy direction.
In other precious metals, silver rose by 0.4% to $33.96 per ounce, hitting its highest level since late October last year. Platinum slightly declined by 0.1% to $999.15, while palladium remained at $965.56. Overall market sentiment continues to lean towards safety, and in the short term, precious metal prices may remain influenced by global geopolitical and economic policy uncertainties.
