Gold Steady Ahead of U.S. Rate Decision as Trump Threats Linger
Gold held gains ahead of the Federal Reserve’s interest rate decision later Wednesday, with traders also weighing President Donald Trump’s latest tariff threats.
Bullion traded near $2,760 an ounce, about $30 below an all-time high as investors turned their attention to the U.S. central bank’s first meeting in 2025. Policymakers are widely expected to keep interest rates steady this week, though Fed Chair Jerome Powell is expected to give a news conference that could provide clues about the outlook for the next meeting in March. Lower interest rates tend to benefit gold, as it doesn’t pay interest.
Market participants also digested recent comments from Trump on U.S. trade policy, which have boosted appetite for safe-haven assets like bullion. The precious metal rose 0.8% on Tuesday even as the dollar strengthened after the president said he supports a universal tariff rate that is “much bigger” than 2.5%. The threat, if implemented, could disrupt U.S. supply chains and hurt growth. Spot gold fell 0.1% to $2,760.91 an ounce as of 6:01 a.m. in London. The Bloomberg Dollar Spot Index fell 0.2%, following a two-day rally. Silver was steady, platinum rose slightly, while palladium fell.
Source: Bloomberg
