Gold Glitters Near Record Highs Amid Fed Cuts and Global Tensions.

Gold prices hovered near record levels on Friday, poised for a third consecutive weekly gain, fueled by U.S. rate cut expectations and heightened geopolitical risks. Spot gold dipped 0.3% to $3,034.09 an ounce by 0235 GMT, after hitting an all-time high of $3,057.21 on Thursday. The precious metal has gained roughly 2% this week, supported by safe-haven demand and a weakening interest rate outlook.

U.S. gold futures were steady at $3,042.60, with analysts forecasting further upside. "Gold doesn’t need a specific trigger to set new records. The fundamentals remain strong," said Kyle Rodda, financial market analyst at Capital.com. He noted a short-term pullback to the $3,000 level could serve as a healthy correction before resuming the uptrend.

The Federal Reserve kept its benchmark interest rate unchanged at 4.25%-4.50% on Wednesday, as expected, signaling two potential rate cuts by year-end. Fed Chair Jerome Powell cited former President Trump's tariff policies as a factor in higher inflation and slower economic growth, adding to market uncertainty.

Geopolitical tensions also continue to drive gold's appeal. Renewed violence in Gaza saw 91 Palestinians killed in Israeli airstrikes on Thursday, ending a fragile two-month ceasefire. Heightened conflict in the Middle East, coupled with global economic uncertainty, has pushed gold to record highs 16 times this year, with four breaks above the critical $3,000 level.

As a non-yielding asset, gold typically benefits in a low-rate environment and serves as a hedge during economic or geopolitical instability.

Meanwhile, other precious metals struggled. Spot silver fell 0.8% to $33.26 an ounce, platinum dipped 0.2% to $983.10, and palladium slid 0.5% to $947.78—all headed for weekly losses.