Spot Gold extended its rally to a new record high above $5,550/oz. on Thursday amid continued US Dollar weakness, persistent geopolitical tensions and broader economic uncertainty.
The US Dollar continued to weaken amid an incoherent US trade policy and tariffs approach along with an erratic and uncertain geopolitical policy administration.
US President Donald Trump brushed off the greenback’s slump to a four-year low, saying the currency is “doing great” and that he does not “think the dollar has declined too much.”
These comments were in stark contrast to the ongoing deterioration in sentiment toward the dollar that has persisted since last year and shows no sign of reversing.
On the monetary front, the Federal Reserve left its federal funds rate target range intact at 3.50%-3.75% at its January 27th-28th meeting, in line with market consensus, following three successive rate cuts last year that brought borrowing costs to their lowest level since 2022.
Yet, Governors Stephen Miran and Christopher Waller voted against the policy decision, favoring another 25 bps reduction.
FOMC policy makers highlighted that economic activity had been expanding at a solid pace, job growth had remained slow, while inflation had remained somewhat elevated.
At the regular press conference, Fed Chair Powell noted the US economy was coming into the new year on a firm footing and current interest rates were appropriate to promote progress toward both of the US central bank’s objectives.
Spot Gold was last up 2.20% on the day to trade at $5,537.95 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
