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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-surges-to-record-highs-amid-easing-policy-concerns-and-geopolitical-tensions/
Gold prices reached a historic milestone on Wednesday, with spot trading pushing the metal to $3,057 per ounce for the third consecutive day.
The surge in gold comes on the heels of a speech by Federal Reserve Chair Jerome Powell, whose measured remarks have provided a boost to investor confidence.
Powell’s address, delivered following the decision to hold current interest rates steady, struck a notably cautious tone on tariffs and their potential economic repercussions. While emphasizing the uncertainty surrounding trade policies, the Fed maintained a neutral stance, steering clear of a hawkish approach that could have stoked fears of prolonged tightening. Instead, policymakers revised their projections, lowering the US economic growth forecast for the year from 2.1% to 1.7%. Moreover, the consensus now anticipates at least two rate cuts by year’s end, a move that analysts expect will support further gains in gold prices.
In a parallel measure aimed at stabilizing financial markets, the Federal Reserve announced a deceleration in the reduction of its asset holdings, planning to slow its balance sheet runoff from $25 billion to $5 billion starting next April. This strategic shift is designed to ease potential liquidity pressures following an expected increase in the debt ceiling and could help maintain lower Treasury yields, indirectly benefiting the gold market.
Investor sentiment has been further bolstered by cautionary signals from Fitch Ratings, which recently trimmed its global economic growth forecast for 2025 from 2.9% to 2.3% and adjusted US growth estimates downward for the current and following years. The agency attributed these revisions partly to the ongoing trade dispute, suggesting that the uncertainties introduced by tariffs are likely to bolster safe-haven demand for gold.
In addition to the domestic economic indicators, renewed geopolitical tensions have also played a significant role in gold’s upward trajectory. Recent escalations in the Middle East, including heightened US military activity in Yemen and the imposition of new measures against Iranian influence, have stirred concerns over potential disruptions in regional shipping lanes. Although experts believe any such disruptions will be short-lived due to broader regional dynamics, the mere prospect of instability has added an extra layer of support to gold’s rally.
With gold breaking historical barriers and a host of domestic and international factors converging to create a climate of uncertainty, market observers expect the metal to remain a preferred asset for risk-averse investors. As the Federal Reserve’s policy path and global economic conditions continue to evolve, gold is likely to maintain its appeal as a hedge against volatility.
For further insights into market developments and expert analysis, industry observers recommend keeping a close watch on upcoming policy announcements and geopolitical events.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/gold-surges-to-record-highs-amid-easing-policy-concerns-and-geopolitical-tensions/
