? At the Federal Reserve System (Fed) meeting held on July 30, 2025, it was decided to keep the key interest rate in the range of 4.25%–4.50%. This marked the fifth consecutive time the Fed maintained the rate unchanged, despite political pressure from President Donald Trump, who insists on lowering it.
(We previously wrote about former US President Donald Trump’s attempts to remove Fed Chair Jerome Powell).
Interestingly, gold prices rose amid anticipation of this meeting. Since the beginning of the year, the price of the precious metal has increased by more than 25%.
What affects the price of gold?
- Fed decisions on the key interest rate directly impact gold’s attractiveness as a safe-haven asset.
- Declining bond yields reduce gold’s competition with income-generating assets.
- Geopolitical and economic uncertainty drives investors to seek protection in precious metals.
- Trade wars and restrictions increase demand for gold as a means of preserving capital.
? As a result, gold continues to be one of the main tools for diversification and investment protection in times of global economic instability.
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