Spot Gold registered a fresh record high of $3,018.75 per troy ounce on Tuesday, as market players focused on the outcome of the Federal Reserve’s two-day policy meeting to assess US economic outlook amid global trade concerns.
The Fed is widely expected to leave its federal funds rate target range intact at 4.25%-4.50% at its March 18th-19th meeting.
The minutes of the FOMC’s January meeting showed a majority of policy makers had acknowledged that the high level of uncertainty warranted a cautious approach when further adjusting monetary policy.
Many policy makers suggested that interest rates could be kept at restrictive levels in case the economy remained robust and inflation – elevated.
On the other hand, several policy makers noted that rates could be reduced if labor market conditions weakened, economic activity slowed, or inflation returned to the 2% target faster than anticipated.
Investors will be paying close attention to the press conference with Fed Chair Jerome Powell for clues over the timing of any future interest rate cuts.
Additionally, new FOMC economic forecasts will offer the most tangible evidence yet of how policy makers perceive the potential impact of the Trump administration’s tariff policies.
Developments on the geopolitical front have also lent support to the yellow metal.
US President Donald Trump on Monday warned that Iran would be held directly responsible for any further attacks by Yemen’s Houthi rebels against US and other foreign vessels in the Red Sea.
Trump is also expected to speak to Russian President Vladimir Putin today about ending the conflict in Ukraine.
Spot Gold was last up 0.52% on the day to trade at $3,016.70 per troy ounce.
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