Gold Near Record High On Fed Rate Cut Expectations And U.S. Election Risks
Date
9/17/2024 3:15:55 PM
(MENAFN- Investor Ideas) Gold prices remained near record highs, supported by a weaker dollar and growing expectations of a major interest rate cut from the federal Reserve. Recent U.S. labour market data pointing to a slowdown has raised the likelihood of a 50 basis point cut. The Fed will announce its decision on Wednesday, followed by the bank of England on Thursday and the Bank of Japan on Friday.
While speculations continue regarding the size of the rate cut, a smaller 25 basis point cut could see gold slide to a certain extent. On the other hand, a 50 basis point cut is expected to offer immediate support to gold prices, possibly pushing the precious metal's value higher.
Beyond central bank policies, other factors are also driving demand for gold. Disappointing Chinese economic data has sparked concerns about a slowdown in the world's second-largest economy. Additionally, rising political uncertainty in the U.S. ahead of the November election is increasing gold's appeal as a safe-haven asset.
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