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.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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