Gold continued its historic rise on Wednesday, surpassing the $5,300 per ounce level, supported by the U.S. dollar falling to its lowest level in nearly four years and ongoing geopolitical tensions, ahead of the Federal Reserve’s monetary policy decision.
اضافة اعلان
By 07:33 GMT, spot gold had risen 1.8% to $5,279.94 per ounce, after reaching a record high of $5,285.35 earlier in the session. U.S. gold futures for February delivery jumped 3.8% to $5,274.80 per ounce, with prices continuing to approach $5,300 in subsequent trading.
Kelvin Wong, Chief Market Analyst at OANDA, said the rise in gold is due to its “very strong inverse relationship with the dollar,” noting that U.S. President Donald Trump’s remarks that the dollar’s value is “excellent” strengthened market expectations of a weaker dollar in the near term.
The dollar is facing what analysts have described as a “crisis of confidence,” having fallen close to its lowest levels in four years, which has boosted demand for gold as a safe haven.
Meanwhile, U.S. consumer confidence dropped to its lowest level in more than 11 years amid concerns over a slowing labor market and rising prices. Trump also announced that he would soon reveal his nominee for the Federal Reserve chair, with expectations of interest rate cuts once the new chair assumes office.
Analysts widely expect the Fed to keep interest rates unchanged in its current meeting, while investment banks, including Deutsche Bank, have predicted that gold prices could reach $6,000 per ounce in 2026, driven by continued investment demand and increased interest from central banks and investors in non-dollar-linked assets.
Agencies
