Gold price hit an all-time high on Wednesday.
This increase in price is driven by demand for safe-haven assets, geopolitical tensions, and uncertainty over tariffs.
As traders awaited the U.S. Federal Reserve’s monetary policy decision.
Spot gold was trading at $3,035.12 per ounce at 0415 GMT, after reaching a record high of $3,038.90 earlier in the session.
Traders and Trump Tariffs.
U.S. gold futures rose 0.1% to $3,042.20.
Tim Waterer, chief market analyst at KCM Trade, said:
“Traders see gold as a well-positioned asset to handle economic uncertainty related to tariffs.”
Investors are concerned about a slowing economy and rising recession risks.
Due to tariffs imposed by U.S. President Donald Trump, which are widely expected to drive up inflation.
The trade tensions have escalated, with 25% tariffs on steel and aluminum taking effect in February.
Along with additional tariffs on specific sectors set for April 2.

Geopolitical Tensions
On the geopolitical front, Israel launched airstrikes on Gaza.
While Palestinian health authorities reported had killed over 400 people on Tuesday, ending nearly two months of relative calm since a ceasefire began.
Israel warned that the attack was “just the beginning.”
Gold, historically a hedge against geopolitical and economic uncertainty, has surged more than 15% since the start of the year.
Meanwhile, the U.S. Federal Reserve is expected to keep its benchmark interest rate steady at 4.25%-4.50% at the conclusion of its two-day policy meeting later today.
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Gold tends to benefit when interest rates are low.
Market participants are also awaiting Fed Chair Jerome Powell’s speech after the rate decision to gauge the future direction of U.S. monetary policy.
Gold, which does not yield interest, tends to benefit when interest rates are low.
Among other precious metals:
- Silver fell 0.2% to $33.97 per ounce.
- Platinum dropped 0.4% to $992.85.
- Palladium edged down 0.1% to $966.24.