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Gold steady with focus on Fed's first rate cut since 2020
18-Sep-2024, 02:06
Gold prices hovered near record highs at $2600 per ounce on Wednesday, supported by a weaker dollar ahead of the Federal Reserve's much-anticipated interest rate decision. With the Fed set to announce its first rate cut since 2020, investors are leaning towards a 50-basis-point reduction. The Fed is anticipated to lower the Fed funds rate, which currently stands at a 23-year high of 5.25%-5.50%, at the September meeting, today. This would be the first rate cut since March 2020. Meanwhile, gold faced slight pressure on Tuesday after US retail sales unexpectedly rose 0.1% in August, countering predictions of a 0.2% decline. Looking ahead, the Bank of England is expected to hold rates steady on Thursday, and the Bank of Japan is likely to signal future rate hikes.
Gold prices hovered near record highs at $2600 per ounce on Wednesday, supported by a weaker dollar ahead of the Federal Reserve's much-anticipated interest rate decision. With the Fed set to announce its first rate cut since 2020, investors are leaning towards a 50-basis-point reduction. The Fed is anticipated to lower the Fed funds rate, which currently stands at a 23-year high of 5.25%-5.50%, at the September meeting, today. This would be the first rate cut since March 2020. Meanwhile, gold faced slight pressure on Tuesday after US retail sales unexpectedly rose 0.1% in August, countering predictions of a 0.2% decline. Looking ahead, the Bank of England is expected to hold rates steady on Thursday, and the Bank of Japan is likely to signal future rate hikes.
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