Gold prices jumped 4% Wednesday, closing in on $5,400 per ounce for the first time as this month's sharp rally showed no signs of fading, fueled by investors seeking safety amid mounting economic and geopolitical uncertainty.

The market showed little reaction to the U.S. Federal Reserve decision to leave rates unchanged, as widely expected, or to comments after the announcement by Fed Chair Jerome Powell.

Spot gold was up 4% at $5,393.19 an ounce at 4:08 p.m. ET (2108 GMT).

U.S. gold futures for February settled 4.3% higher at $5,303.60.

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

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

The Fed held interest rates steady, citing still-elevated inflation alongside solid economic growth, but gave little indication in its latest policy statement of when borrowing costs might fall again.

Both Governor Christopher Waller, a contender to replace Powell when his term as central bank chief ends in May, and Governor Stephen Miran, on leave from his job as an economic adviser at the White House, dissented in favor of a quarter-percentage-point rate cut.

"Precious metals simply don't care that the Fed is clearly in hiatus mode, rather than pause, with the complex as a whole trading higher throughout the press conference," said Tai Wong, an independent metals trader.

Powell said inflation in December was likely still well above the central bank's 2% target. U.S. President Donald Trump said on Tuesday he would soon announce his pick to replace Powell.

Gold is considered a safe-haven asset and typically performs well during periods of low rates. It has gained more than 25% since the start of the year, building on last year's record gains.

Crypto group Tether plans to allocate 10%–15% of its investment portfolio to physical gold, its CEO Paolo Ardoino said, adding to the bullion which it says already backs some of its products.

Spot silver rose 3.3% to $116.69 an ounce after hitting a record high of $117.69 on Monday. Prices have gained more than 60% so far this year.

"A number of silver indicators suggest prices may be due a correction in the short term," analysts at Standard Chartered said in a note. Spot platinum rose 2.5% to $2,707.67 an ounce, after hitting a record $2,918.80 on Monday, while palladium rose 7.2% to $2,073.50 an ounce.