Gold faces sluggish Thursday after early new all-time high at $3,057

LONDON (March 20) Gold’s price (XAU/USD) has hit another new all-time high at $3,057 and currently resides near $3,032 at the time of writing on Thursday.  Despite some selling pressure from profit-taking, the earlier uptick came on the back of the Federal Reserve (Fed) interest rate decision overnight, where the central bank kept rates unchanged in the range of 4.25%-4.50%. Fed Chairman Jerome Powell reiterated that tariffs should only be a delay in the timing to reach the inflation target. 

Meanwhile, on the geopolitical front, tensions are brewing in Gaza and Turkey. Israeli strikes continue across Gaza while calling on the population to relocate as ground offensive operations could be launched soon. Mass protests burst out in Turkey after Istanbul mayor Ekrem Imamoglu’s detention, President Tayyip Erdogan's main political rival. 

Daily digest market movers: Stick to the plan

• During the Federal Reserve meeting, Chairman Powell said his base case is that any tariff-driven bump in inflation will be “transitory,” but later added that it will be very challenging to say with confidence how much inflation stems from tariffs versus other factors. He also said recession odds have moved up, though are not high, Bloomberg reports. 
• Swiss Gold exports to the US remained elevated in February at 147.4 tons, worth more than $14 billion, Reuters reports. 
• Chinese media are advising investors to be cautious on Gold as prices are likely to be volatile going forward, according to a report published in the China Securities Journal on Thursday. The precious metal’s prices are elevated because of geopolitical uncertainties and a fast-changing global economic environment; investors should diversify assets, balance risks and avoid blindly chasing prices higher, Bloomberg reports. 

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