Gold prices see recovery after Fed’s rate cut
Date
11/10/2024 4:21:03 AM
(MENAFN) Gold prices, which had experienced a decline following the results of the US presidential election, saw a recovery after the Federal Reserve's decision to cut interest rates on Thursday. The price of gold rebounded as a result of the Fed's move, which lowered the policy interest rate by 25 basis points, marking the second consecutive rate cut by the central bank. This decision had a direct impact on the precious metal market, helping to restore investor confidence in gold as a safe-haven asset.
As of 2100 GMT, the price of gold per ounce was around USD2,705, reflecting a daily increase of 1.72 percent. This marks a noticeable recovery from earlier in the week when the price of gold had fallen below USD2,650 following the uncertainty brought on by the US presidential election. The election results, which often lead to market volatility, initially caused a drop in gold prices, but the Fed’s rate cut provided a new impetus for the yellow metal to regain value.
Gold had traded at over USD2,740 per ounce just the week before the election, but the results of the vote led to a sharp dip in prices. After the election on Tuesday, investors seemed to move away from gold, and the price dropped to around USD2,650 an ounce. However, the Federal Reserve's monetary policy shift quickly reversed this trend, helping to boost gold’s price back above the USD2,700 mark.
In addition to the gains in gold, the price of silver per ounce also saw an increase on Thursday. Silver rose by 2.58 percent, mirroring the upward momentum in the precious metals market that was driven by the Federal Reserve’s decision to lower interest rates. This rise in silver prices came as investors sought refuge in precious metals, following the central bank's efforts to stimulate economic growth through lower borrowing costs.
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