Gold reached a new record high after policymakers indicated expectations of slower growth and increased inflation following the decision to maintain interest rates at the same level for the second consecutive meeting. Chair Jerome Powell mentioned uncertainties stemming from President Donald Trump's policy changes, but emphasized that the central bank was not rushing to adjust borrowing costs. Powell stated that inflation has risen partly due to tariffs and that further progress may be delayed this year. The Federal Open Market Committee decided to keep the benchmark federal funds rate within a range of 4.25%-4.5%. The dollar and Treasury yields decreased as Powell held a press conference after the rate decision, leading to a rise in gold prices. The market anticipates a more accommodative monetary policy based on the Fed's projection of higher inflation. The decision to keep rates stable comes at a time when Trump's policy changes have raised concerns about the US economy and the Fed's role in maintaining its stability. Due to the growing uncertainty, investment experts recommend allocating 5% to 10% in real assets such as commodities, gold, infrastructure, real estate, and natural resources. Gold has seen a 16% increase this year, following a strong performance last year, as investors seek safe havens amidst a bleak economic outlook. Spot gold was trading at $3,047.93 an ounce in New York, with silver, platinum, and palladium prices declining.