Gold touched a peak on Thursday, tracing a steep plunge in the greenback following Fed’s meeting as the policymakers decided to maintain interest rate status and hinted for possible interest rate cut in 2024.

Spot gold ticked up by 1.2% to a peak of $2,222.14 an ounce, while gold futures soared over $2,224.80 per ounce. Both pared some gains but still topped $2,200 level.

After Fed’s meeting, the greenback saw a drop by 0.6% and supported the broader community complex.

However, gold outperformed the others, setting new records as investors bet on the possibility of lower interest rates in the upcoming months.

The yellow metal and metal markets were bolstered before Fed’s meeting.

Fed Chair Jerome Powell stated that while he did witness some latest stubborn in inflation, the fundamental scenario of taming inflation persisted. In addition, Fed officials predicted that interest rates will decline by 75 basis points by the end of this year.