Gold prices remained within a narrow range in Asian trade on Tuesday, with ongoing concerns about higher-for-longer interest rates. The precious metal found support around the $2,000 per ounce level, rebounding from a recent two-month low in the past two sessions. Despite the recovery, gold stayed within the established $2,000-$2,050 trading range observed through most of 2024.
Spot gold prices inched up 0.1% to $2,019.17 per ounce, while gold futures for April delivery stabilized at $2,030.20 per ounce by 23:34 ET (04:34 GMT).
Recent geopolitical tensions in the Middle East and between Russia and Ukraine provided some support to gold, but the prospect of sustained higher U.S. interest rates has limited more significant gains. Traders have adjusted expectations for early interest rate cuts by the Federal Reserve, particularly after higher-than-expected U.S. inflation readings for January. Additionally, several Fed officials cautioned against anticipating early rate cuts.
The outlook for gold remains uncertain in the near term, with the metal’s performance influenced by interest rate dynamics. Citi analysts suggested that gold could potentially reach $3,000 per ounce by 2025, especially if central banks increase their bullion purchases, inflation remains subdued, and the global economy faces a deep recession in the coming year.
Meanwhile, other precious metals weakened, with platinum futures slipping 0.4% to $903.10 per ounce, and silver futures dipping 0.1% to $23.023 per ounce.
