02:00 PM EDT, 03/19/2025 (MT Newswires) -- (Updates prices.)

Gold was steady at a record high mid-afternoon on Wednesday, firming above the US$3,000 mark ahead of an interest-rate decision coming later in the afternoon as the Federal Reserve's policy committee wraps up its two-day meeting.

Gold for April delivery was last seen unchanged at US$3,040.80 per ounce.

The price of the metal is benefiting from safe-haven buying as U.S. trade wars unsettle global financial markets amid violence in the Middle East, while the dollar has weakened substantially from its mid-January highs.

"Gold's latest run to fresh all-time highs has been relentless yet reasonably calm. The orderly move through the key $3000 level to new highs likely shows that this move has been largely expected and was more a question of 'when' rather than 'if' prices get here. Market participants are unlikely to be surprised by gold's continued climb higher, given rising trade tensions, growing concerns about growth and persistent geopolitical risks. Dollar weakness has also been a tailwind," UBS noted.

The Federal Open Market Committee will release its latest interest-rate decision on Wednesday afternoon. The central bank is widely expected to leave rates unchanged, but may offer some insight on its future rate decisions as President Donald Trump prepares to impose inflationary blanket 25% tariffs on imports from Canada and Mexico on April 2.

The dollar rose early, with the ICE dollar index last seen up 0.65 points to 103.89, though it remains well under the recent high of 109.96 touched on Jan.13.

Treasury yields rose ahead of the rate decision, with the U.S. two-year note last seen paying 4.092%, up 4.4 basis points, while the yield on the 10-year note was up 3.1 points to 4.321%.