Gold has breached $2200 to all-time high of $2,222 on Fed signalling three rate cuts this year. PGMs and most metals are also higher.
Gold sprints to record high as Fed sticks to 2024 rate-cut viewGold hits all-time high of $2,222.39/oz
Dollar slips to 1-week low after Fed verdict Fed stands pat on rates and view on 2024 cuts
Gold prices climbed to a record high on Thursday, as the U.S. dollar and bond yields ticked lower after the Federal Reserve maintained its projection of three rate cuts for this year. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
Spot gold was up 0.8% at $2,203.84 per ounce, as of 0153 GMT, after hitting an all-time high of $2,222.39 earlier in the session. U.S. gold futures jumped 2.1% to $2,206.30.The Fed held interest rates steady on Wednesday, but policymakers indicated they still expected to reduce them by three quarters of a percentage point by the end of 2024.Fed Chair Jerome Powell said recent high inflation rate readings had not changed the underlying "story" of slowly easing price pressures in the United States.
"It's the goldilocks scenario for gold prices, where marginally higher inflation expectations meet lower nominal rates to create decreased real yields," said Kyle Rodda, a financial market analyst at Capital.com.
https://www.reuters.com/markets/commodities/gold-sprints-record-high-fed-sticks-2024-rate-cut-view-2024-03-21/
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