FX.co ★ Gold Extends Rally Above $5,500

Gold continued its impressive rally, surpassing $5,500 per ounce on Thursday, reaching a new peak due to ongoing US dollar weakness and heightened economic and geopolitical tensions. The momentum gathered strength after President Trump downplayed the dollar's dip to four-year lows, suggesting a tolerance for a weaker currency despite persistent threats of tariffs and fresh criticism aimed at the Federal Reserve's independence. Concurrently, the Federal Reserve maintained interest rates within the 3.50%-3.75% range, citing strong economic activity and initial signs of labor market stabilization, though it issued a cautionary note on elevated inflation and an uncertain outlook. The split decision—where two officials advocated for an immediate rate cut—bolstered expectations of potential policy easing later in the year. Additionally, concerns over currency debasement drove investors away from currencies and bonds, while substantial central-bank purchases and ongoing ETF inflows further supported gains.