Gold prices showed minimal movement in Asian trading on Tuesday, maintaining proximity to record highs as global economic uncertainties and expectations of early interest rate cuts fueled a robust surge in the precious metal.
The recent rally, however, seems to have temporarily halted, awaiting further signals on the U.S. economy. Investors are particularly eyeing comments from the Federal Reserve and crucial labor market data scheduled for later in the week.
As of 00:40 ET (05:40 GMT), spot gold witnessed a modest 0.2% rise, reaching $2,118.59 per ounce. Concurrently, gold futures expiring in April stabilized around $2,126.75 per ounce. Both instruments had surpassed the $2,100 mark on Monday for the first time in history, nearing record highs of $2,135.72 per ounce for spot gold and $2,130.20 per ounce for futures.
The surge in demand for gold is attributed to indications of a cooling U.S. economy. Furthermore, signs of a potential recession in Europe and Japan, coupled with less-than-impressive growth projections from China, have contributed to increased demand for safe-haven assets. The precious metal continues to attract investors seeking refuge amid global economic uncertainties.
