Gold prices surged to fresh record highs on Tuesday as Federal Reserve Chair Jerome Powell's cautious economic outlook fueled investor demand for the precious metal. Powell's warning that "near-term risks to inflation are tilted to the upside and risks to employment to the downside" created what he called a "challenging situation" with "no risk-free path" ahead.
The metal has now posted five consecutive weekly gains, driven by expectations of continued Federal Reserve rate cuts and growing economic uncertainty. Gold has gained nearly 40% so far this year, benefiting from lower interest rates that reduce the opportunity cost of holding non-yielding assets.
