Gold Prices Surge to Record High Following Fed Interest Rate Projections

Gold prices surged to historic highs after the U.S. Federal Reserve hinted at potentially lowering interest rates twice this year, amid ongoing geopolitical and trade tensions.

Gold futures for April delivery rose 0.52% ($15.7) to $3,056.9 per ounce at 09:08 AM Mecca time. Spot gold also slightly increased to $3,049.5 per ounce, after reaching a new all-time high of $3,055.96 earlier in the day.

Additionally, silver futures for May rose by 0.79% to $34.48 per ounce, while spot platinum edged up 0.24% to reach $999.99.

Meanwhile, the U.S. dollar index, which tracks the performance of the dollar against a basket of six major currencies, remained steady at 103.46 points.

These movements followed the Federal Reserve's decision to maintain interest rates in the 4.25%-4.50% range, with policymakers projecting two quarter-point rate cuts by the end of 2025.

Fed Chairman Jerome Powell commented that President Trump's current policies, including broad tariffs on imports, might lead to slower economic growth and temporary increases in inflation.