Gold Hits Record $3,037 as Traders Bet on Fed and Geopolitical Risks
Gold (XAU/USD) hit a fresh all-time high of $3,037 on Wednesday, fueled by mounting geopolitical risks and economic uncertainty.
Investors are piling into the precious metal as a hedge against volatility, with traders closely watching the Federal Reserve’s upcoming policy decision.
Market concerns over U.S. President Donald Trump’s tariffs, including a 25% levy on steel and aluminum, have heightened inflation fears, raising the appeal of gold as a safe-haven asset. Additionally, escalating tensions in the Middle East have added to risk aversion, pushing gold prices higher. Analysts suggest that if the Fed signals a dovish stance, gold could rally beyond $3,050 in the near term.
Fed Decision Looms as Inflation Fears Persist
The Federal Reserve is set to conclude its two-day policy meeting today, with markets widely expecting interest rates to remain steady in the 4.25%-4.50% range. However, uncertainty over future rate cuts is keeping traders on edge.
Retail sales data remains weak, signaling a potential economic slowdown.
Consumer inflation expectations have risen to 3.9%, indicating persistent price pressures.
Fed Chair Jerome Powell’s speech at 18:30 GMT will provide further insight into the central bank’s stance.
Non-yielding gold benefits from a low-interest-rate environment, and if the Fed acknowledges economic risks tied to tariffs and slowing growth, traders may see this as a green light for further gold buying.
Technical Outlook: Gold Holds Firm in Upward Channel
Gold remains in a strong uptrend, trading within an ascending channel on the 2-hour chart. The price continues to post higher highs and higher lows, reinforcing bullish momentum.
Key resistance stands at $3,046, with a breakout opening the door to $3,058 and $3,072.
Support lies at $3,027, followed by $3,014. The 50-period EMA at $2,997 provides additional strength.
A break below $3,027 could trigger a correction toward $3,000, but buyers remain in control above this level.
For now, gold’s bullish momentum remains intact, with traders watching Fed commentary and geopolitical developments for further direction.
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