Search for balance after record gold

Gold held steady after rising to a record high in the previous session. Gold held steady after rising to a record high in the previous session, weighed down by U.S. rate cut expectations, geopolitical tensions and the risk of a pullback in stock markets. Bullion reached a peak of $2,141.79 an ounce on Tuesday, surpassing the previous high set in early December. The precious metal has gained almost 5 percent in the past five sessions. The rally surprised some in the market, especially since expectations for when the Fed will cut borrowing costs have not changed. Swap markets see a 62 percent chance of a rate cut in June, compared with 58 percent in late February. Other factors beyond rates have also contributed to gold’s strength. Macro funds, which have been inactive in the market until recently, have become new buyers. Bullion’s role as a safe haven asset is also supported by rising tensions in the Middle East and disruptions in global shipping, China’s ongoing economic woes and the U.S. presidential election at the end of the year. Spot gold was down 0.1 percent at $2,127.03 an ounce as of 9 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1 percent. Silver rose, while platinum and palladium were flat.