Gold Prices Hold Firm as Markets Await Fed Rate Cut; Silver Surges to Record High

Gold prices held steady during Asian trading on Wednesday, maintaining a positive tone ahead of the U.S. Federal Reserve’s widely anticipated interest rate cut. Both spot gold and gold futures saw mild gains, with spot prices edging up 0.1% to $4,211.24 per ounce and March futures rising 0.1% to $4,239.60 by early morning ET. Traders remained cautious, however, as markets awaited the Fed’s economic outlook, with some analysts warning that policymakers could adopt a more hawkish tone despite expectations for a 25-basis-point cut.

Silver continued to dominate market sentiment after soaring to a record high above $62 an ounce. Spot silver touched $62.018/oz, extending a rally that has already pushed prices up more than 100% in 2025. Growing concerns over tightening supplies and rising industrial demand have fueled speculative interest in the metal. Silver’s designation as a U.S. critical mineral further boosted its appeal, as Washington aims to secure stable supply chains due to its essential role in electronics and other industrial applications. Many traders are also turning to silver as a lower-cost safe-haven alternative to gold amid global economic uncertainty.

Other metals advanced as well, supported by a weakening U.S. dollar ahead of the Fed decision. Platinum briefly reached a two-week high near $1,700 per ounce, while copper futures on the London Metal Exchange climbed 0.9% to $11,576.95 per ton. Expectations of lower U.S. interest rates have enhanced the attractiveness of non-yielding assets like precious metals, though sentiment remains sensitive to inflation trends and future policy signals.

Markets also monitored developments surrounding the next Federal Reserve Chair, with reports indicating that President Donald Trump is conducting final interviews for candidates to replace Jerome Powell when his term ends in May 2026.