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.
See Also: Cathie Wood Believes Most Memecoins Will Face ‘Fearsome Declines,’ But They Could End Up Becoming Collector’s Items
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
Read Next:
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
