Gold surged past $2,790 in Thursday morning trading, setting a new all-time high after eclipsing its late October 2024 peak. Central bank actions and rising demand for safe-haven assets fueled the metal's climb.

Several major central banks have signaled a more dovish stance on inflation in recent hours, leading speculators to anticipate lower borrowing costs ahead—providing further support for gold prices.

Furthermore, speculation over higher U.S. tariffs is leading to greater demand for gold by central banks, with disruptions affecting trading in London.

Fed Holds Steady, While Other Major Central Banks Ease Borrowing Costs

The Federal Reserve held interest rates steady on Wednesday and refrained from offering clear guidance on future moves.

Yet, Fed Chair Jerome Powell struck a noticeably less hawkish tone compared to his stance in December.

Powell welcomed the latest inflation readings for January and did not rule out the possibility of rate cuts, stating that weaker labor market conditions or faster-than-expected disinflation could justify easing monetary policy.

Powell further stated that interest rates remain “meaningfully above neutral,” suggesting there is room for potential cuts.

“We remain comfortable with our forecast that the FOMC will deliver two more 25bp cuts in June and December this year and one more in 2026,” Goldman Sachs economist David Mericle wrote in a note Thursday.

Market-based expectations continue to point toward two additional Fed rate cuts by the end of 2025, with the first move likely coming in June.

On Wednesday, the Bank of Canada announced a 25-basis-point rate cut to 3%, citing inflation's broad convergence toward the 2% target. Policymakers also noted the potential negative economic effects of rising U.S. trade tariffs.

The BoC further announced the end of quantitative tightening and plans to restart asset purchases in early March to support liquidity and economic activity.

On Thursday, U.S. GDP growth for the fourth quarter of 2024 came in at 2.3%, missing the 2.6% consensus estimate.

The same day, both the European Central Bank and Sweden's Riksbank also announced rate cuts.

Gold Miners Rally, Central Banks Rush To Gold In London

Rising gold prices are fueling a rally among metal miners during Thursday trading.

The widely followed VanEck Gold Miners ETF GDX rallied 4.2% reaching levels last seen in early November 2024. Junior miners, as tracked by the VanEck Junior Gold Miners ETF GDXJ, were similarly up by 4.1%.

In a seminar last week, VanEck portfolio manager Imaru Casanova indicated that central banks are rushing to buy gold.

"Central banks are emerging as a key demand driver for gold prices," she said.

As reported by Reuters, gold traders in London are scrambling to borrow bullion from central banks as shipments to the U.S. surge amid speculation of potential import tariffs.

The Bank of England, which stores gold for central banks, is experiencing delays of up to four weeks for withdrawals—far longer than the usual few days.

The rush is driven by traders hedging risks on COMEX and capitalizing on a price premium between U.S. futures and London spot prices.

Former Koch Supply & Trading executive Robert Gottlieb told Reuters that the BoE is struggling to handle the increased borrowing requests.

Mining stocks showing a notable surge on Thursday include:

Name	1-day Return
Endeavour Silver Corp. EXK	8.18%
MAG Silver Corp. MAG	7.67%
Coeur Mining, Inc. CDE	7.15%
Fortuna Mining Corp. FSM	6.96%
SilverCrest Metals Inc. SILV	6.72%

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Image created using artificial intelligence via Midjourney.