Gold hits new all-time high amid expectations of a Fed rate cut this year

Gold hit an all-time high in morning trading on Thursday, reaching $3,057. The price increase was driven by the Federal Reserve System's (Fed) hint at two possible interest rate cuts this year, making the precious metal more attractive as a safe-haven asset amid global economic and geopolitical risks.

On Wednesday, the Fed left the overnight benchmark rate at 4.25–4.50%. At the same time, it is expected to reduce the rate by 0.25 percentage points by the end of 2025.

As emphasized by Fed Chair Jerome Powell, the trade policy of the Donald Trump administration, including high import duties, had a restraining effect on the US economy and led to a temporary increase in inflation.

Another factor contributing to gold's rise has been the escalation of tensions in the Middle East.

The yellow metal has already hit an all-time high 16 times in 2025, with four records surpassing the $3,000 mark. 

Gold is traditionally seen as a safe-haven asset during periods of economic uncertainty and low interest rates, Reuters reports.