Spot Gold extended its rally to yet another record high of $3,045.41 per troy ounce on Wednesday, as geopolitical developments in the Middle East and global trade fears underpinned safe haven demand ahead of the outcome of the Federal Reserve’s policy meeting.
Israel delivered a series of air strikes upon Gaza, leading to the death of over 400 people on Tuesday, according to Palestinian health authorities. The ceasefire agreement between Israel and Hamas lasted for just a few weeks. Israel warned that the assault was “just the beginning.”
Meanwhile, 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% today.
The new set of FOMC economic forecasts may offer the most tangible evidence yet of how policy makers perceive the potential impact of the Trump administration’s tariff policies.
“If the FOMC meeting takes on a dovish tone in response to growing uncertainty over how tariffs may impact growth, this could provide a further assist to the gold price … could be a green light for gold to make a push above $3,050,” KCM Trade chief market analyst Tim Waterer was quoted as saying by Reuters.
Spot Gold was last up 0.10% on the day to trade at $3,037.21 per troy ounce.
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