Gold Hits Record Highs as Markets Pause Before Powell Speech

Risk assets consolidated Monday with major equity indices pausing their recent rally ahead of Federal Reserve Chair Powell's anticipated speech on monetary policy outlook. Gold surged to fresh all-time highs above $2,650 per ounce, gaining 0.8% as investors sought safe-haven assets amid policy uncertainty. The dollar remained largely unchanged against major peers, with EUR/USD holding near 1.1050 and GBP/USD steady around 1.3300. Market participants are positioning cautiously, awaiting clarity on the Fed's rate path following last week's aggressive 50 basis point cut. The pause in risk appetite reflected across forex markets, with implied volatilities declining as traders avoided taking significant directional bets. Gold's record rally underscores persistent concerns about monetary policy normalization and geopolitical tensions, supporting demand for traditional safe havens despite the broader risk-on environment.