Gold reached a new all-time high on Wednesday afternoon, surpassing $3,050 per ounce after US policymakers projected slower economic growth and rising inflation.
By 5 p.m. in New York, spot prices were up 0.4%, trading at $3,045.66 per ounce, after hitting a high of $3,051.42 earlier in the day. US gold futures increased by 0.6%, reaching $3,056.20 per ounce.
This new record came after US Federal Reserve Chair Jerome Powell held a press conference, where he acknowledged the “high degree of uncertainty” caused by significant policy changes under President Donald Trump. Despite this, Powell emphasized that the Federal Reserve would not rush to adjust borrowing costs, preferring to wait for “greater clarity” before taking action.
In light of rising inflation, the Federal Open Market Committee decided to keep the federal funds rate in a range of 4.25% to 4.5%. This decision pushed the US dollar and Treasury yields lower, increasing gold’s attractiveness to investors.
“The market is clearly anticipating a more relaxed monetary policy as the Fed expects higher inflation,” said Bart Melek, global head of commodity strategy at TD Securities.
Michael Arone, chief investment strategist at State Street Global Advisors, suggested that investors should consider allocating 5% to 10% of their portfolios to real assets like commodities, gold, infrastructure, real estate, and natural resources, especially in light of uncertainty around Trump’s trade policies.
Gold has risen by 16% in 2025 so far, continuing its strong performance from the previous year.
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