On Wednesday afternoon, gold prices surged to a new all-time high, breaking through the $3,050-per-ounce mark after the US Federal Reserve’s latest policy announcement. By 5 p.m. in New York, spot prices had increased by 0.4%, reaching $3,045.66 per ounce, after briefly hitting a high of $3,051.42. US gold futures also rose by 0.6%, settling at $3,056.20 per ounce.
The record-breaking rise in gold prices came on the heels of a press conference by US Federal Reserve Chair Jerome Powell, where he highlighted the growing economic uncertainty in light of President Donald Trump’s significant policy changes. Despite concerns over rising inflation, Powell emphasized that the Federal Reserve is not rushing to make any immediate changes to borrowing costs. Instead, the Fed will wait for “greater clarity” before taking action.
The Federal Open Market Committee (FOMC) voted to keep the federal funds rate in a range of 4.25%-4.5%, which sent both the US dollar and Treasury yields lower, making gold more attractive to investors. As a result, bullion prices have surged by 16% so far in 2025, continuing the strong upward momentum from the previous year.
The market’s response to the Fed’s decision reflects growing optimism that the central bank may adopt a more dovish stance, with higher inflation projections fueling demand for safe-haven assets like gold. “Clearly, the market is projecting an easier monetary policy, as the Fed projects higher inflation,” said Bart Melek, global head of commodity strategy at TD Securities.
Michael Arone, Chief Investment Strategist at State Street Global Advisors, also weighed in on the current market sentiment. In an interview with Bloomberg, he advised that investors should consider allocating 5% to 10% of their portfolios to real assets, including commodities like gold, infrastructure, real estate, and natural resources, as the uncertainty surrounding Trump’s trade policies continues to loom large.
Gold’s recent surge is a reflection of both domestic and global economic factors, with rising inflation, geopolitical instability, and shifting monetary policies creating an environment in which investors are increasingly turning to precious metals for protection. This latest milestone is further evidence of gold’s enduring role as a key asset in times of economic uncertainty.
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