Gold price sets new record above $3,050 following Fed verdict

Gold hit another all-time high on Wednesday afternoon, surpassing the $3,050-an-ounce level, after US policymakers projected slower growth and higher inflation.

By 5 p.m. in New York, spot prices traded 0.4% higher at $3,045.66 an ounce, having earlier reached a high of $3,051.42. US gold futures went up 0.6% to $3,056.20 an ounce.

Gold’s new record follows a press conference by US Federal Reserve chair Jerome Powell on Wednesday, in which he acknowledged the “high degree of uncertainty” from President Donald Trump’s significant policy changes.

However, Powell also stressed that the US central bank is not in a hurry to adjust borrowing costs, and policymakers will wait on “greater clarity” before acting.

Despite rising inflation, the Federal Open Market Committee has voted to keep the benchmark federal funds rate in a range of 4.25%-4.5%. Both US dollar and Treasury yields both pushed lower on the decision, lifting gold’s appeal to investors.

“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.

“We believe that investors should have a 5% to 10% allocation in real assets, like commodities, gold, infrastructure, real estate and natural resources,” said Michael Arone, chief investment strategist at State Street Global Advisors, in a Bloomberg interview, citing the greater uncertainty from Trump’s trade policies.

Bullion has climbed 16% so far in 2025, continuing on its strong performance from the year prior.

(With files from Bloomberg)