Gold Shines With Fifth Weekly Gain After Fed Cuts Rates
Gold prices are on track for their fifth straight weekly gain as the Federal Reserve cut interest rates by 25 basis points. The move boosted demand for the safe-haven metal.
In Asian trading, spot gold went up by 0.2% to nearly $3,650 per ounce, while December gold futures also rose by about the same amount. Earlier this week, gold touched a record high of around $3,707 per ounce.
However, the rise in gold was slowed down as the US dollar recovered from recent lows. A stronger dollar usually makes gold less attractive for investors.
The Fed also gave guidance for the future, suggesting there could be two more rate cuts this year and one more in 2026. Fed Chair Jerome Powell said the cut was a “risk management” step due to a weaker US jobs market, and that future policy will be decided meeting by meeting.
Other metals also gained. Silver prices moved higher, while platinum and copper posted small increases, showing overall strength in the commodities market.
Impact:
Gold might keep rising if the Fed continues cutting rates and inflation stays sticky. But a stronger US dollar could possibly limit further gains in the precious metals market.
