Gold Surges Past 3050, Sets New All-Time High

During Thursday‘s Asian session, spot gold hovered around $3,049.40 per ounce after breaking above the $3,050 mark overnight, setting a new all-time high. The surge followed the Fed’s decision to keep rates unchanged while signaling two possible rate cuts this year.

A softer dollar and falling U.S. Treasury yields added momentum to golds rally. On Wednesday, gold rose 0.44% to settle at $3,047.20, hitting an intraday high of $3,051.99. Year-to-date, gold has gained over 15%, cementing its status as a preferred safe-haven asset.

The Fed maintained its policy rate at 4.25%-4.50% and hinted at a 50-basis-point rate cut this year, fueling inflation concerns and boosting golds appeal. Fed Chair Jerome Powell mentioned that trade tariffs could slow progress on inflation, raising expectations for a rate cut in June to 66%.

The Fed also revised its 2024 inflation forecast up to 2.7% while trimming its GDP growth outlook to 1.7%. Equity gains, falling bond yields, and a weaker U.S. dollar have collectively supported gold prices.

Looking ahead, traders should monitor upcoming macroeconomic data and central bank policy moves. Key events today include the Bank of Englands rate decision, U.S. initial jobless claims, February existing home sales, and geopolitical developments.

As global economic uncertainties persist, gold remains highly sensitive to interest rates, inflation trends, and broader market risks, suggesting further volatility and potential upside.