Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Investing

Gold Price Hits New Record as Fed Holds Rates Steady

by Invest Daily Pro
March 20, 2025
in Investing
0
Gold Price Hits New Record as Fed Holds Rates Steady
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

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

ShareTweetPin

Related Posts

Top 5 Canadian Mining Stocks This Week: StrategX Jumps 64 Percent on Fundraising
Investing

Top 5 Canadian Mining Stocks This Week: StrategX Jumps 64 Percent on Fundraising

August 24, 2025
Tech 5: Softbank to Invest US$2 Billion in Intel, Figure Seeks Nasdaq IPO
Investing

Tech 5: Softbank to Invest US$2 Billion in Intel, Figure Seeks Nasdaq IPO

August 24, 2025
Gold Price Rises as Powell Boosts Rate Cut Expectations in Jackson Hole Speech
Investing

Gold Price Rises as Powell Boosts Rate Cut Expectations in Jackson Hole Speech

August 23, 2025
Crypto Market Update: World Liberty Gets Coinbase Approval with Stablecoin Listing
Investing

Crypto Market Update: World Liberty Gets Coinbase Approval with Stablecoin Listing

August 23, 2025
Top 5 Copper Reserves by Country
Investing

Top 5 Copper Reserves by Country

August 22, 2025
CG1 Non-renounceable Pro-rata Entitlement Offer
Investing

CG1 Non-renounceable Pro-rata Entitlement Offer

August 22, 2025
Next Post
New SPX Correction Signal! How Long Will It Last?

New SPX Correction Signal! How Long Will It Last?

Recommended

Everything Looks Fine… Until You See This Chart

Everything Looks Fine… Until You See This Chart

April 25, 2025
Will Virtual Reality Transform Online Gaming, or is it Just Temporary Hype?

Will Virtual Reality Transform Online Gaming, or is it Just Temporary Hype?

August 21, 2024
Dining In/Out (12/05/24)

Dining In/Out (12/05/24)

December 4, 2024
Lazada Philippines highlights profitability, AI-driven innovations, improved e-commerce experience in 2024 milestones

Lazada Philippines highlights profitability, AI-driven innovations, improved e-commerce experience in 2024 milestones

December 4, 2024
Huw Edwards: new tribunal ruling sheds light on HR and employment law risks

Huw Edwards: new tribunal ruling sheds light on HR and employment law risks

August 2, 2024
SEIPI warns of investor flight over BoC tracking

SEIPI warns of investor flight over BoC tracking

August 4, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) 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.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Thank you

    Copyright © 2025 investdailypro.com | All Rights Reserved