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. Meanwhile, one gram of gold changed hands at 3,344 Turkish Liras.

Gold prices remained near record levels as the Federal Reserve (Fed) announced that they would not rush into interest rate cuts. On Tuesday, gold hit a record high of $2,942, starting the new day at around $2,900. Gold has gained $300 in value since the beginning of the year, breaking records eight times. One gram of gold began the new day at 3,344 Turkish Liras. A quarter of gold exchanged hands at 5,500 Turkish Liras. Fed Chairman Jerome Powell expressed that there was no rush to make interest rate cuts during his presentation to the U.S. Congress.

EYES ON U.S. INFLATION Investors are focusing on the U.S. inflation data to be released today. It is expected that the inflation rate for January in the U.S. will remain steady at 2.9 percent. Powell stated, “Given our policy stance is now considerably less restrictive compared to before and the economy continues to remain strong, there is no need to rush to adjust our policy stance.”

TAX CONCERNS PERSIST The cautious approach of the Fed diminishes the allure of gold bullion, while President Donald Trump’s tariff actions continue to trigger inflation worries. Regarding tariff policies, Powell mentioned, “It is not wise to speculate on policies that are not yet clear. We do not know which tariff policies will be implemented.” On the other hand, the demand for gold from major central banks is preventing prices from easing downwards.