The Gold price is trading sideways after a backslide from record highs of $2,430 in mid-April, when it became apparent interest rates would remain higher for longer in the United States. This made non-yielding Gold less attractive because investors could earn relatively more by staying in cash.
Persistently high inflation in the US caused the recalibration of the outlook for interest rates. From the US Federal Reserve (Fed) – the body tasked with setting interest rates in America – foreseeing the need for three 0.25% interest-rate cuts in 2024, markets now expect only one and a half 0.25% cuts, due to persistently high inflation.
More light will be shed on the outlook for interest rates when the Fed meets to decide its monetary policy on Wednesday, in the meantime Gold price may remain relatively subdued.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.