Following the message from the Fed regarding interest rate cuts, gold prices traded just below the peak. The price of an ounce of gold started the day around $2,900, while a gram of gold changed hands at 3,344 Turkish Lira.

Gold prices hovered close to record levels in the wake of the US Federal Reserve’s announcement that it would not rush to cut interest rates. On Tuesday, reaching a record high of $2,942, the price of gold opened the new day at around $2,900. Gold has gained $300 in value since the beginning of the year, setting a record eight times. Starting the day at 3,344 Turkish Lira, a gram of gold was traded, while a quarter of gold changed hands at 5,500 Turkish Lira. Federal Reserve Chairman Jerome Powell stated during a presentation to the US Congress that there was no rush to cut interest rates.

EYES ON US INFLATION Investors are focused on the US inflation data to be released today. It is expected that the January inflation in the US will remain steady at 2.9%. Powell mentioned, “Due to our policy being significantly less restrictive compared to before and the economy continuing to remain strong, there is no need for us to rush in adjusting our policy stance.”

TAX CONCERNS PERSIST The cautious stance of the Fed reduces the attraction towards bullion, while President Donald Trump’s customs tariff measures continue to trigger inflation concerns. Regarding tariff policies, Powell mentioned, “It is not wise to speculate on something we do not know yet, such as which tariff policies will be implemented.” On the other hand, the demand of major central banks for gold is preventing prices from declining further.