tl;dr
Gold prices rose 0.7% to $3,357 per ounce and Bitcoin remained near February highs at $97,500 as investors awaited the Federal Reserve’s policy announcement. The Fed is expected to keep interest rates steady at 4.25%-4.50%, with markets watching for signals on future rate cuts amid persistent inflat...
Gold prices rose 0.7% to $3,357 per ounce, and Bitcoin remained near February highs at $97,500 as investors awaited the Federal Reserve’s policy announcement amid geopolitical tensions and trade risks.
The Federal Open Market Committee is expected to hold interest rates steady at 4.25%-4.50%, with markets closely watching for signals regarding future rate cuts amid persistent inflation and softening demand.
Safe-haven demand and renewed Chinese investor interest supported gold gains, while Bitcoin benefited from speculative ETF flows and potential easing of financial conditions.
Geopolitical tensions escalated after a Houthi missile strike near Tel Aviv’s Ben Gurion Airport led to Israeli airstrikes on Houthi-controlled sites in Yemen, with both parties threatening retaliation.
U.S. trade policy took a hawkish turn as proposed tariffs on foreign pharmaceuticals and media raised concerns about potential global trade disruptions.
Renewed U.S.-China trade talks improved investor sentiment, supporting gains in Asian stocks and strengthening the U.S. dollar ahead of the Fed’s statement and Chair Jerome Powell’s press conference.
Market participants eagerly await dovish signals from the Fed that could potentially drive Bitcoin toward the $100,000 liquidity magnet level, which remains about 10% below its January all-time high of $108,786.
Analysts highlight that central banks reducing exposure to U.S. assets, including the dollar, along with increased Chinese demand, have contributed to gold's steady rise.
Chair Powell’s remarks will be closely analyzed for insight into the inflation outlook and the possibility of policy easing later this year versus continued rate-hold amid geopolitical and economic uncertainties.
Overall, the interplay of persistent inflation, geopolitical conflict, and evolving trade policies creates a complex backdrop for investors positioning in gold and cryptocurrencies like Bitcoin as they await clearer signals from the U.S. Federal Reserve.