Gold prices near all-time high as Fed holds rates
Gold is trading close to its all-time high—about $3,415 an ounce on August 29, 2025, just below April's record of around $3,500.
This jump comes as the US economy shows surprising strength and the dollar remains flat after a recent decline, with everyone waiting to see if new inflation data will push the Federal Reserve to change interest rates.
Gold's price reflects inflation and US monetary policy
Gold's price is like a pulse check for how people feel about inflation and US money policy.
If inflation stays high, the Fed might hold off on cutting rates—which usually keeps gold in check since it doesn't pay interest.
But with political pressure on the Fed and global tensions rising, gold is looking more attractive as a safe place to park money during uncertain times.
Rate cut, strong GDP numbers, and central bank shifts boost gold
A possible rate cut in September—backed by Fed Governor Christopher Waller—has fueled demand, with markets giving it an 85% chance.
Strong GDP numbers have also made investors nervous about inflation, driving up interest in gold ETFs.
Plus, central banks are moving away from the US dollar, adding even more momentum.
Gold prices have climbed this week as people hedge their bets in a shifting economy.