[SINGAPORE] Gold prices are expected to consolidate in the near term after breaking record highs earlier this week, said market watchers.

Spot gold prices surged to a record high of US$3,034.74 per ounce on Wednesday (Mar 19), after breaching the US$3,000 mark the previous day.

The prices eased to around US$3,030 by 3.28 pm on Friday, a 37.3 per cent increase from the spot price a year ago, and a 22.2 per cent rise year to date.

The rally was fuelled by heightened market uncertainties, which in turn were driven by escalating Middle East tensions and the unpredictable trade policies of US President Donald Trump.

However, the rapid pace of price growth has raised expectations of a near-term consolidation, especially given that US$3,000-per-ounce territory is a strong psychological resistance level for investors.

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