XAU/USD: Gold Steady Right Under Record as Fed Rate Decision Looms Large

Precious metal was gravitating toward $2,770 per ounce. The record high? That’s just about 20 bucks higher.

💵 Got 20 Bucks for Record?

• Gold prices XAUUSD remained well-bid early Wednesday as markets were shifting their focus to the looming Federal Reserve decision on interest rates. The precious metal was floating near $2,760 to $2,770 per ounce — just about $20 from its all-time record of $2,790 set in late October last year.
• What’s coming next for bullion? The Fed’s rate decision, followed by a commentary from the central bank’s chief, Jay Powell, is likely to shake up gold prices, opening up some trading opportunities.

⚔️ Fed and Trump at Odds

• Analysts expect the Fed to keep interest rates flat after a series of cuts that aimed to alleviate the pressure on the economy and allow for better liquidity. All that helped markets get more efficient and gold get more attractive — lower rates reduce the opportunity cost of holding non-yielding bullion.
• But new stuff has been happening and that complicates the Fed’s rate path. President Donald Trump said last week he “knows rates much better” than Jay Powell and demands an immediate reduction.

🧈 Gold in 2025

• Back to gold, traders and investors expect this year to be a record-breaking one for the shiny commodity. Trump’s policies around a stronger US dollar, lofty tariffs, broad deregulation and potential trade wars could flare up inflation and necessitate a rate hike (or hikes?) from the Federal Reserve.
• Economic uncertainty and rising price pressures tend to bump up demand for gold, which is seen as a hedge against both — markets rush to it for its qualities as a safe-haven asset.