Gold Holds Near Record as Traders Weigh Fed Moves, Risk-Off Mood
Gold held near a record ahead of an interest-rate decision from the Federal Reserve, with the precious metal supported by risk-off sentiment following a selloff on Wall Street.
Bullion traded near $3,031 an ounce after rising to a fresh all-time high on Tuesday. The Fed is poised to keep borrowing costs steady when policymakers meet later on Wednesday, with investors set to focus on the bank’s updated economic projections and Chair Jerome Powell’s press conference for clues about the path ahead for US monetary policy.
Traders are paring back their bets on further easing this year — a scenario that would typically weigh on the precious metal as it doesn’t pay interest — but gold is getting support from growing haven demand.
There are concerns around a US slowdown as President Donald Trump’s tariff-agenda weighs on consumer sentiment. Investors have slashing holdings of US equities by the most on record, according to Bank of America Corp.’s latest survey, underscoring a massive rotation underway in markets.
The gloomier outlook for both the US and global economy has underscored bullion’s role as a store of value in uncertain times. The metal is up more than 15% so far this year, extending its strong 2024 performance. Several major banks have raised price targets in recent weeks.
Spot gold was little changed at $3,032.66 an ounce at 8:34 a.m. in Singapore, after hitting record $3,038.33 on Tuesday. The Bloomberg Dollar Spot Index was flat, while silver and platinum fell. Palladium was steady.
Source : Bloomberg
