Gold Gains Ground On Fed's Rate Cut And Lower Treasury Yields
Date
9/19/2024 3:08:57 PM
(MENAFN- Investor Ideas) Gold is trading higher today, rebounding after a brief decline from record levels. This rise follows the U.S. federal Reserve's first interest rate cut in years. The Fed announced a 50 basis point reduction which generated some volatility.
While expectations continue to point to several interest rate cuts during the next few months, Fed Chair Powell has emphasized that the central bank is in no rush to ease monetary policy further and has advised caution in interpreting future policy moves. Gold's increase is also supported by a weakening U.S. dollar and falling Treasury yields, creating a favourable environment for the precious metal.
Other major central banks' monetary policy decisions could also affect investors' sentiment and gold's appeal compared to other assets. Additionally, ongoing concerns about economic slowdowns in the U.S. and China, coupled with rising tensions in the Middle East, continue to contribute to gold's attractiveness as a safe-haven asset.
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