American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

Gold prices surge as Fed signals a slower pace in rate cuts cycle

by admin October 1, 2024
October 1, 2024
Gold prices surge as Fed signals a slower pace in rate cuts cycle

Gold prices on COMEX rebounded from losses earlier in the day as escalating tensions in the Middle East aided safe-haven demand for the precious metal. 

The Palestinian militant group Hamas said that its leader, Fatah Sharif and his family was killed in an Israeli airstrike in Lebanon Monday. 

The news supported demand for safe-haven assets such as gold.

However, gold prices were under pressure in Asian trade today after the US Federal Reserve Chair Jerome Powell on Monday signalled a moderate pace in the central bank’s easing cycle. 

Powell says Fed in no hurry to cut rates

On Monday, Fed Chair Powell said that interest rates may fall to a level that neither restricts nor boosts the economy, though the central bank is not in a hurry to cut rates further. 

Powell said  at the National Association for Business Economics Annual Meeting, Nashville, Tennessee:

Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting.

The US Fed at its last policy meeting cut interest rates for the first time in four and a half years by 50 basis points to begin its monetary policy easing cycle.

Gold prices have benefited from the interest rates cut as lower rates boost demand for the non-yielding yellow metal. 

“If the economy slows more than we expect, then we can cut faster. If it slows less than we expect, we can cut slower, and that’s really what’s going to decide it. But I think from a base case standpoint, we’re looking at it as a process that will play out over some time, not something that we need to go fast on,” Powell said on Monday. 

Gold market focuses on key US economic data

The market will be eagerly waiting for the release of key economic data from the US during this week. 

The ADP non-farm employment change data is expected on Wednesday, while unemployment claims in the US will be out the next day. Additionally, the official employment change by the US Bureau of Labor Statistics will be released on Friday. 

Traders will be assessing these data points to understand the direction of the monetary policy easing cycle of the Federal Reserve in the months to come. 

“The moderation in job growth and the increase in labor supply have led the unemployment rate to increase to 4.2 percent, still low by historical standards. We do not believe that we need to see further cooling in labor market conditions to achieve 2 percent inflation,” Powell said. 

Gold prices still near record highs

Even though the US Fed has hinted at a slower pace in its monetary policy easing cycle, gold prices are still likely to benefit from lower rates. 

Neils Christensen, editor at Kitco.com, said in a report:

Gold has managed to maintain its purchasing power, achieving broad-based gains and reaching all-time highs against major currencies like the euro, the British pound, the Canadian dollar, and the Australian dollar.

Gold prices have been hovering around $2,650-$2,660 per ounce over the last few days, which is not far away from the record high of $2,696.90 per ounce hit last week. 

At the time of writing, the most-active December gold contract on COMEX was 0.2% higher at $2,665.45 per ounce. 

Christensen added:

Although gold prices encountered some resistance at all-time highs above $2,680 an ounce last week, many analysts expect the precious metal still has plenty of upside as the Federal Reserve now leads central banks in a global interest rate easing cycle.

The post Gold prices surge as Fed signals a slower pace in rate cuts cycle appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Klaviyo stock rises 3% after Benchmark initiates coverage with a $42 PT: Should you buy?
next post
India’s factory growth slows to eight-month low in September, PMI data reveals

Related Posts

Bollywood and billionaires: India’s rich and famous cast...

May 22, 2024

Planet endures record-hot April, as scientists warn 2024...

May 9, 2024

The road to recovery: how Ukraine plans to...

December 12, 2024

US-made munitions used in deadly strike on Rafah tent camp,...

May 31, 2024

One dead, seven missing after two Japanese military...

April 22, 2024

India summons US State Department official over call...

March 29, 2024

This quiet British island was once the site...

May 26, 2024

US military rebuilds runway on site of ‘nightmare’...

July 2, 2024

China eyes US agriculture for potential trade war...

March 3, 2025

Tens of millions facing hunger and water shortages...

April 5, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,002)
    • Investing (2,453)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved