Gold (XAU/USD) price managed to reach an all-time high of $3,057 before dropping nearly 0.50% to around $3,041 at the time of writing on Thursday (3/20). Despite selling pressure from profit-taking, the previous uptick came after the Federal Reserve (Fed) interest rate decision overnight, where the central bank kept interest rates unchanged in the range of 4.25%-4.50%. Fed Chairman Jerome Powell reiterated that tariffs should only delay the time to achieve inflation targets.

Meanwhile, on the geopolitical front, tensions are rising in Gaza and Turkey. Israel continues its attacks on Gaza while calling on residents to evacuate as a ground offensive operation could be launched soon. Mass protests erupted in Turkey after the detention of Istanbul Mayor Ekrem Imamoglu, a key political rival of President Tayyip Erdogan.

Daily Market Movers Summary: Gold Export Pressure

At the Federal Reserve meeting, Chairman Powell said his base case is that any increase in inflation caused by tariffs will be "transitory," but later added that it would be very difficult to say with confidence how much of the inflation is coming from tariffs versus other factors. He also said the chances of a recession have increased, though not high, Bloomberg reported.

Swiss Gold Exports to the U.S. remained high in February at 147.4 tons, worth more than $14 billion, Reuters reported.

Chinese media advised investors to be cautious with 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 high due to geopolitical uncertainty and a rapidly changing global economic environment; investors should diversify assets, balance risks, and avoid blindly chasing higher prices, Bloomberg reported. (Newsmaker23)

Source: FXstreet