Gold hits record high on demand for safe-haven assets, awaiting Fed decision

Gold prices rose to a record high on Wednesday, amid tensions in the Middle East and uncertainty in trade, which increased the attractiveness of bullion as a safe-haven asset, while traders awaited the decision of the US Federal Reserve, which is to be taken later this day, Reuters reports, UNN writes.

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Spot gold rose 0.2% to $3041.37 per ounce as of 05:40 GMT after reaching an all-time high of $3042.95 earlier in the session.

US gold futures rose 0.3% to $3048.70.

“Traders see gold as an asset that is well able to cope with economic uncertainty associated with duties,” said KCM Trade chief market analyst Tim Waterer, adding that the current trading environment, where there is instability, plays on the strengths of gold as a hedge against uncertainty.

Investors are concerned about an economic slowdown and increased recession risks due to US President Donald Trump’s tariffs, which are believed to be able to push inflation.

The tariffs have fueled trade tensions and include a fixed 25% levy on steel and aluminum, which took effect in February, as well as reciprocal and industry-specific tariffs to be introduced on April 2.

The Fed, which will conclude its two-day policy meeting later this day, is expected to keep its key interest rate stable in the 4.25%-4.50% range.

Non-yielding gold, a hedge against geopolitical and economic uncertainty, thrives in a low interest rate environment.

“If the FOMC meeting takes on a restrained tone in response to growing uncertainty about how tariffs could affect growth, it could further support the price of gold… it could be a green light for gold to rise above $3050,” Waterer said.

Spot silver rose 0.1% to $34.05 an ounce, platinum lost 0.4% to $993.45, and palladium added 0.1% to $968.20.

Gold soared to a record high for the second time in a week18.03.25, 09:17 • 10113 views