Gold hits new record above $5,500 on Fed decision
Gold prices extended their record-breaking rally on Thursday, climbing above the $5,500 mark and approaching $5,600 after the US Federal Reserve kept interest rates unchanged and geopolitical tensions between the United States and Iran intensified.
Spot gold jumped more than 2.4% on the day to $5,548.50 per ounce as of 0800 GMT, after reaching a fresh all-time high of $5,595.44 earlier in the session, News.Az reports, citing foreign media.
Over the past week alone, gold prices have risen by around 13%.
The precious metal has gained approximately 102% over the past 12 months and about 29% since the beginning of the year. The rally has been fueled by escalating trade and geopolitical risks, along with interest rate cuts by major central banks that have increased demand for safe-haven assets.
Silver prices also moved higher, rising more than 1% to a record high of $120.43 per ounce. Silver has posted even stronger gains than gold, surging over 283% compared with a year earlier.
Geopolitical tensions have sharpened after US President Donald Trump said in a social media post on Wednesday that a “massive armada” was moving toward Iran. He warned Tehran to reach an agreement or face a “much worse attack.”
Trump said the fleet, led by the aircraft carrier Abraham Lincoln, was larger than the force previously deployed to Venezuela and was “prepared to rapidly fulfil its missions with speed and violence if necessary.”
Meanwhile, the Federal Reserve on Wednesday left its policy rate unchanged within a target range of 3.5% to 3.75%, noting that economic activity has been expanding at a “solid” pace.
Speaking at a press conference after the decision, Fed Chair Jerome Powell said the central bank would consider cutting interest rates once inflationary pressures ease. He said policymakers expect the impact of tariffs on goods prices to peak and then begin to decline, provided there are no new major tariff increases.
“If we see that, that would be something that tells us that we can loosen policy,” Powell said, adding that this process is expected to unfold over the course of the year.
By Nijat Babayev
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