Gold Climbs Toward Record Highs as Fed Cut and Geopolitical Risks Boost Demand

Gold extended its rally on Thursday, rising toward $4,230 per ounce and marking a third straight session of gains, approaching the record levels seen in October. The move followed the Federal Reserve’s widely expected rate cut, which reinforced the metal’s appeal against a softer dollar and lower yields.

Fed Chair Jerome Powell signaled flexibility on the policy path, saying officials are weighing whether to slow the pace of cuts, deliver modest reductions, or implement larger moves—while ruling out the possibility of rate hikes. The Fed also kept its projection for one rate cut in 2026, though subtle wording changes indicated growing uncertainty around the timing and scale of future easing.

Policymakers upgraded their U.S. growth outlook and trimmed inflation forecasts for 2025 and 2026, supporting expectations of a gradual but continued cooling in price pressures.

Gold also drew support from rising geopolitical tensions, including the U.S. interception of a sanctioned oil tanker near Venezuela and ongoing unpredictability surrounding efforts toward a Russia–Ukraine peace arrangement, both of which strengthened safe-haven demand.