Gold prices advanced to near-record levels around $2,778 per ounce, benefiting from a 0.1% decline in the dollar following the Federal Reserve’s latest policy meeting. The precious metal’s strength comes despite Fed Chair Powell’s hawkish stance, where he emphasized the central bank won’t rush into rate cuts and needs to see further progress on inflation. Market expectations for rate cuts have significantly shifted, with swap traders now pricing in only 50 basis points of cuts for the year, while some investment banks are forecasting no cuts at all. The metal’s resilience is particularly notable given the complex economic backdrop, including potential Trump administration policies on tariffs and taxes that could stoke inflation. Traders are now focused on forthcoming fourth-quarter GDP data for additional insights into the US economic trajectory, while other precious metals including silver, platinum, and palladium also showed gains in London trading.