October 15, 2024

Fed Rate Decision Sends Gold To New High

Bas Kooijman, CEO and Asset Manager of DHF Capital

The Federal Reserve’s interest rate decision came as a boost to the gold market and drove prices to a new high. The 50 basis point rate cut could help extend the current uptrend in gold prices which could continue to see new records thanks to other additional supporting factors.

The decision acts as a start to the interest rate cut cycle that markets have been awaiting for a long time now and could fuel appetite for assets like gold and others. The size of the cut also opens the way for more aggressive actions in the coming months.

In this regard, the Federal Reserve’s dot plot shows a steeper decline in interest rates than previously forecast by the central bank. This trajectory could further cement gains in gold prices.

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