Gold hits new all-time high ahead of Fed
Gold (XAU/USD) prices corrected slightly lower to near $3,030 at the time of writing on Wednesday (3/19) after climbing higher and hitting a new all-time high of $3,045 earlier in the day. The positive move came after headlines emerged that authorities detained Istanbul Mayor Ekrem Imamoglu, a major political rival of President Tayyip Erdogan, on charges including corruption and aiding a terrorist group.
The headlines added geopolitical tailwinds to Gold after Tuesday’s phone call between US President Donald Trump and Russian President Vladimir Putin, which failed to produce a ceasefire agreement or major breakthrough. President Trump and President Putin agreed to immediately halt attacks on energy infrastructure in the Ukraine war. However, Ukrainian President Volodymyr Zelenskyy said late Tuesday that talks on Ukraine without Ukraine would be fruitless.
However, precious metals traders may face some headwinds on Wednesday as the Federal Open Market Committee (FOMC) will announce its interest rate decision and publish an update of its Summary of Economic Projections. Following the meeting, Federal Reserve (Fed) Chairman Jerome Powell will deliver remarks in a press conference. With Trump’s policies as a backdrop, markets will be curious to see how many, if any, interest rate cuts the Fed members have planned for 2025 and beyond.
Source: FXStreet