Gold hits double record ahead of Fed decision

Gold prices surged to fresh record levels ahead of the Federal Reserve’s first interest-rate decision of the year, supported by a weaker US dollar and ongoing geopolitical uncertainty.

Spot gold extended its rally, gaining more than 1% in early trading to reach $5,266 per ounce, marking an all-time high.

In line with the rise in spot prices, gram gold also climbed to a new record, testing 7,349 Turkish lira.

Dollar weakness boosts gold demand

OANDA Senior Market Analyst Kelvin Wong said the rally in gold reflects a strong inverse correlation with the US dollar.

He noted that price gains during the US session were influenced by comments from President Donald Trump regarding the value of the dollar.

Trump downplays dollar concerns

Speaking to reporters in Iowa, Trump said current dollar levels are fair, adding, “I could move the dollar up or down like a yo-yo.”

He dismissed concerns that the dollar has weakened excessively, calling such worries unfounded.

Standard Chartered analyst Steven Englander said currency markets constantly search for a clear trend, and that official indifference to sharp moves tends to embolden dollar sellers.

Markets await Fed rate decision

Following Trump’s remarks, investor focus has shifted to the Fed’s interest-rate decision due at 10:00 p.m. Istanbul time.

The central bank is widely expected to keep rates unchanged, while markets price in the possibility of two rate cuts later this year.

Rate-cut expectations continue to support non-yielding assets such as gold, while adding to selling pressure on the US dollar.