Gold prices climbed above $5,300 per ounce for the first time on Wednesday, driven by economic uncertainty and a weakening U.S. dollar, as investors awaited the Federal Reserve’s policy decision amid increasing concerns over its independence.

Spot gold was up 1.7% at $5,278.28 an ounce by 11:05 a.m. ET (1605 GMT) after touching a record $5,311.31. Prices gained more than 3% in the previous session.

U.S. gold futures for February delivery jumped by 3.8% to $5,275.30 an ounce.

The U.S. dollar index hovered near four-year lows, making greenback-priced bullion cheaper for overseas buyers. [USD/]

“The rally in the precious metals have kind of taken on a life of their own at this point,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Gold remains overbought and vulnerable to a correction, but strong buying interest during dips continues to favor the upside, with the next target projected at $5,400, Grant added.

All Eyes on the Fed and Powell’s Remarks

Investors awaited the Federal Reserve’s policy decision at 2:00 p.m. ET (1900 GMT) on Wednesday, with rates expected to remain steady and attention focusing on Chair Jerome Powell’s post-meeting remarks. [FEDWATCH]

U.S. President Donald Trump said on Tuesday he would soon announce his pick to replace Powell, whose term as chair ends in May, and predicted rate cuts under the new leadership.

Gold, a safe-haven asset that does not yield interest, typically performs well during periods of low interest rates and broader uncertainty. It has gained more than 20% since the start of the year, building on last year’s record gains.

“Retail demand remains weak because of these record highs, and there’s a lot of pent-up demand out there waiting for a break… Dealers are pulling back from the scrap business because refiners are so backlogged and not taking new orders until they’ve processed the metal,” Grant said.

Spot silver rose 0.1% to $113.08 an ounce after hitting a record high of $117.69 on Monday. It has gained nearly 60% so far this year.

Spot platinum fell 0.9% to $2,618.21 an ounce, having hit a record $2,918.80 on Monday, while palladium rose 4.6% to $2,022.25.

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(Reporting by Anmol Choubey in Bengaluru; Editing by Joe Bavier and Shailesh Kuber)