Gold Surges to Record Highs; Fed Decision Looms

Spot gold climbed 1.4% to $5,259.78, extending a 3% gain from the prior session, while U.S. gold futures jumped 3.4%. The dollar's near four-year lows made the greenback-priced bullion more attractive to international buyers.

Investors are closely watching the Federal Reserve's policy decision and Chair Jerome Powell's post-meeting remarks, especially following President Donald Trump's comments on Powell's replacement and anticipated rate cuts. Despite being deemed overbought and susceptible to a correction, strong buying interest on dips continues to support the upside, with a projected target of $5,400.

However, retail demand is currently weak due to record prices, and dealers face backlogs. Other precious metals like silver, platinum, and palladium also saw significant gains, reflecting a broader investor shift towards safe-haven assets.