Gold prices hit an all-time high Wednesday as the Federal Reserve projected slower economic growth and higher inflation, boosting demand for the safe haven.
What happened: Spot gold hit $3,056 per ounce earlier in the day before retracing slightly. Gold futures on the Commodity Exchange jumped to $3,060.20.
The yellow metal has been smashing records this year, precipitated by a dampening risk sentiment due to President Donald Trump's aggressive tariff policies. Spot gold has gained over 16.21% year-to-date.
On Wednesday, the central bank kept the interest rates changed, and lowered 2025 GDP growth projections from 2.1% to 1.7%, fueling further gains for gold.
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The rise has trickled down to physical gold-backed cryptocurrencies as well. Tether Gold and PAX Gold have gained 16.67% and 16.42% year-to-date.
| Cryptocurrency | Gains +/- | Price (Recorded at 1:44 a.m. ET) |
| PAX Gold PAXG/USD | +16.67% | $3,065.24 |
| Tether Gold (CRYPTO: XAUt) | +16.42% | $3,052.71 |
These increases contrasted sharply with the performance of the rest of the cryptocurrency market.
The overall market capitalization has shrunk 14% from $3.6 trillion to $2.8 trillion since the year began, with market barometer Bitcoin BTC/USD slipping over 8%. Notably, Bitcoin has been aggressively promoted as a “digital gold” asset by its supporters.
Price Action: At the time of writing, Spot Gold was exchanging hands at 3,046.14, down 0.10% in the last 24 hours, according to data from Benzinga Pro.
Photo courtesy: Shutterstock
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