Gold steadies near record after Fed holds interest rates steady

The Federal Open Market Committee voted on Wednesday to keep the benchmark federal funds rate in a range of 4.25%-4.5%,

Gold steadied close to a record after the Federal Reserve held interest rates steady for a second straight meeting.

The Federal Open Market Committee voted on Wednesday to keep the benchmark federal funds rate in a range of 4.25%-4.5%, and said it would further slow the pace at which it is reducing its balance sheet. However, policymakers telegraphed expectations for slower economic growth and higher inflation as President Donald Trump’s ambitious and frequently erratic policy agenda has placed the economy and the Fed’s ability to keep it on track, under increasing pressure.

The dollar and Treasury yields pushed lower after the rate decision, and bullion was up slightly.

Investors widely expected the Fed to leave rates unchanged at this meeting. They’ll be listen for additional clues from Fed Chair Jerome Powell’s press conference in Washington on how officials factor Trump’s policies into their outlook and how they might respond should economic conditions deteriorate.

Bullion has climbed nearly 16% this year, extending last year’s strong performance. Investors flock to the metal for safety amid gloomy outlook for both the US and global economy. Several major banks have raised price targets in recent weeks.

Spot gold rose 0.2% to $3,039.54 an ounce at 2:33 p.m. in New York. Silver, platinum and palladium fell.