Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

Gold Price Hits New Record as Fed Holds Rates Steady

by admin March 20, 2025
March 20, 2025
Gold Price Hits New Record as Fed Holds Rates Steady

The US Federal Reserve held its second meeting of the year from Tuesday (March 18) to Wednesday (March 19) amid broad economic chaos caused by the Trump administration’s tariff threats.

As was widely expected, the central bank left interest rates at 4.25 to 4.5 percent, a range it set at its November meeting; it also said it will slow the pace at which it is shrinking its balance sheet.

In his post-meeting remarks, Chair Jerome Powell said the Fed remains focused on its dual mandate of maximum employment and price stability. He noted that labor market conditions are “solid” and said inflation has moved closer to the Fed’s 2 percent target, although he did acknowledge that it remains “somewhat elevated.”

The US consumer price index (CPI) was up 3 percent year-on-year in January, up slightly from 2.9 percent in December. CPI fell marginally in February to come in at 2.8 percent. The US personal consumption expenditures price index has also remained relatively flat, with a 2.5 percent year-on-year rise in January versus December’s 2.6 percent.

The sticky inflation numbers come against a backdrop of global uncertainty as US President Donald Trump implements and threatens tariff action. Tariffs could drive consumer prices higher on critical goods for US consumers, including new gasoline, homes and cars, as the US relies on oil, lumber and steel imports from Canada.

Powell noted that uncertainty is running high with Trump now in office, saying that his administration is making policy changes in four key areas: trade, immigration, fiscal policy and regulation.

“It is the net effect of these policy changes that will matter for the economy and the path of monetary policy. While there have been recent developments in some of these areas, especially trade, uncertainty around changes and their economic outlook is high,” Powell said, adding that the Fed is focusing on ‘separating the signal from the noise.’

The Fed will adjust its policy based on incoming data, and is well positioned to wait for greater clarity.

When asked by a reporter why the Fed is still predicting two rate cuts this year despite waning consumer sentiment, Powell emphasized that the data shows the economy has remained strong.

“I would tell people that the economy seems to be healthy; we understand that sentiment seems to be quite negative at this time, and that probably has to do with turmoil at the beginning of an administration,” he said.

Following the Fed’s announcement, the gold price spiked to a new record high in the US$3,045 per ounce range. The silver price declined for most of the morning, but moved up after the Fed decision, staying above US$33.50 per ounce.

The S&P 500 (INDEXSP:INX) climbed 1.04 percent to 5,675, while the Nasdaq-100 (INDEXNASDAQ:NDX) rose 1.25 percent to 19,707 and the Dow Jones Industrial Average (INDEXDJX:.DJI) moved up 0.83 percent to 41,920.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

0
FacebookTwitterGoogle +Pinterest
previous post
Amazon AI scammers duped investors out of millions with ‘passive income’ scheme, FTC alleges
next post
Van Eck Opposes Equinox Gold’s US$1.8 Billion Takeover of Calibre Mining

Related Posts

Gidji JV Exploration Update

May 3, 2024

Strong Lithium Demand Ahead — Will Supply Keep...

June 30, 2023

5 Top Weekly TSX Stocks: Argonaut Gold Up...

August 21, 2023

Top 3 Canadian Graphite Stocks of 2023

July 29, 2023

Cybersecurity Stocks: 10 Biggest Companies in 2023

June 20, 2023

New Option Agreement Signed For Vanadium Processing Plant...

September 12, 2023

Trump and FLOTUS Dive into Crypto With Meme...

January 21, 2025

Sarama Completes Tranche 1 Equity Placement and ASX...

June 26, 2024

Juggernaut Files for Approval of Private Placement Financing

June 13, 2025

Westgold Strategic Alliance and Placement

May 31, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Laramide Identifies Targets for 15,000 Meter Drill Program at Kazakhstan Uranium Project

    • Coinbase Expands USDC Rewards to Canada

    • NVIDIA Facing Weak Demand for New Chip as Chinese Firms Turn to Homegrown Silicon

    • Newmont Withdraws from Mount Coolon Joint Venture, GBM Regains Full Ownership

    • Crypto Market Update: Bitcoin ETFs Log Biggest Inflows Since July

    Categories

    • Business (1,374)
    • Investing (2,910)
    • Politics (3,699)
    • Stocks (1,792)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved