Gold prices have been on the rise lately as the Federal Reserve has kept key interest rates unchanged. This has led to investors looking for higher returns in gold due to the low-interest rates environment. The Federal Reserve announced that it will keep the federal funds rate in a range of 0.00-0.25%. Low-interest rates are generally associated with a weakening U.S. dollar, which has historically resulted in weaker stock markets and stronger gold prices. As the U.S. dollar weakens, investors and speculators become more inclined to buy gold, driving prices higher. The recent announcement of the federal funds rate staying at the same level was one of the several factors that have supported a rising gold price this year. Gold has also benefited from increasing inflationary pressure around the world and a widespread aversion to risk. Investors have been shying away from stock markets and instead turning to other assets, such as gold, for their investment portfolios. Central banks around the world have also been buying gold as a way to diversify their reserves. After decades of selling off gold reserves, many central banks are now accumulating gold again in an effort to protect their investors from economic volatility. China, the world’s largest buyer of gold, has been a particularly active buyer of gold in recent years. This is due both to its entire population’s preference to hold gold and its strategy of diversifying its holdings. The effect of these numerous factors is making gold an increasingly attractive investment. As low-interest rates persist, gold prices could remain high in the near term, making for an attractive alternative for investors seeking higher returns. Ultimately, the Federal Reserve’s decision to keep interest rates low has an undeniable impact on the gold price, and investors should be well-informed before striking a decision either way. Gold has historically been seen as a refuge in times of economic uncertainty and with turbulent times on the horizon, it could be an attractive option for those seeking exposure to the precious metal.