Gold Holds Near $2,900 as Traders Assess Powell’s Speech and Trade Dynamics

Gold prices have remained stable just beneath their record high as traders process recent statements from the US central bank and ongoing global trade concerns. Currently trading around $2,900 per ounce, gold witnessed a peak of over $2,942 in a recent trading session.

Federal Reserve Chair Jerome Powell indicated that the central bank plans to maintain a cautious approach toward interest rate cuts. This decision has somewhat limited any upward momentum for gold as rising yields on 10-year US Treasuries pose challenges for the non-yielding asset.

The demand for gold has seen a spike as fears of a global trade conflict rise. Traders are closely monitoring geopolitical developments, particularly the actions taken by the US government concerning tariffs, which could influence economic conditions and inflation rates.

Gold has gained traction recently, breaking record after record, with some analysts predicting prices could soon test the $3,000 per ounce mark. Factors influencing this rise include increasing demand for safe-haven assets, especially as the current US administration continues to enact aggressive trade policies.

Investors are also awaiting critical inflation data in the upcoming weeks. Forecasts suggest the consumer price index, excluding food and energy, may show notable increases, reinforcing the Federal Reserve's approach toward keeping interest rates stable.

As of the latest updates, spot gold is trading at $2,896.23 per ounce, reflecting a slight decline of 0.1%. Meanwhile, the Bloomberg Dollar Spot Index appears relatively unchanged. Other precious metals such as silver, platinum, and palladium are also holding steady.

Gold, Trading, Powell