Powell Destroys Market Fantasy! Gold Soars to New Highs. How Much Higher Can It Go?

TradingKey - Powell's speech sent gold prices soaring to new highs. Goldman Sachs predicts gold could reach $3,700 by year-end or even higher. 

On Thursday, after Powell's remarks, spot gold (XAUUSD) peaked at $3,357 per ounce, settling at $3,330 per ounce.

Gold Price Chart, Source: TradingView.

In his speech at the Chicago Economic Club, Powell said potential tariffs could lead to rising inflation and slowing growth. However, the Fed won’t intervene to save the market. 

He noted, "The market faces a lot of uncertainty, but it is digesting what’s happening. It’s orderly and functioning as expected."

Before this, many expected the Fed would act to address issues from Trump's tariffs. Powell's comments dashed those hopes, driving up safe-haven demand and pushing gold prices higher.

Gold has been on a remarkable rise this year, up nearly 28% so far. Despite this, Goldman Sachs has raised its gold price forecasts. They believe it could hit $3,700 by the end of 2025, and possibly reach $4,500.