The usdt cryptoprecious metals market witnessed dramatic movements following Federal Reserve Chair Jerome Powell's address at the Chicago Economic Club. Spot gold (XAUUSD) surged 2.3% intraday to establish a fresh all-time high at $3,357 per ounce before consolidating near $3,330.
Market analysts attribute this bullish momentum to Powell's nuanced stance on potential tariff impacts. The Fed Chair acknowledged that proposed trade barriers could simultaneously elevate inflation pressures while dampening economic growth, yet emphasized the central bank's reluctance to intervene in market corrections.
"Current market conditions reflect appropriate price discovery mechanisms," Powell stated during the Q&A session. "While uncertainties persist regarding trade policies, we observe orderly capital allocation across asset classes." This measured commentary effectively dismantled speculative positions betting on immediate Fed accommodation.
Gold's year-to-date performance now stands at an impressive 28% appreciation, outperforming most traditional asset classes. Investment banks have consequently revised their valuation models, with Goldman Sachs' commodities team publishing a revised target range of $3,700-$4,500 for late 2025.
The yellow metal's appeal as an inflation hedge has strengthened amid evolving macroeconomic conditions. Market participants increasingly view gold as a strategic portfolio component rather than purely speculative positioning, evidenced by sustained ETF inflows and central bank accumulation.
Technical analysts note gold's breakout above previous resistance levels suggests potential for extended upward movement. The $3,500 psychological barrier now represents the next key test for bullion prices, with support established near the $3,250 consolidation zone.