Gold Hits Record High of $2,600 After Fed's 50 Basis Point Rate Cut

Sep 18, 2024, 06:23 PM

Gold prices surged to a record high following the Federal Reserve's decision to cut its benchmark interest rate by 50 basis points. The rate cut, which reduced the rate to a range of 4.75%-5%, led to a significant increase in gold prices, with spot gold reaching an all-time high of $2,591.19 per ounce and gold futures rising over 1% to surpass $2,620. Gold also briefly touched $2,600. The move by the Fed spurred investors to seek safe-haven assets amid economic uncertainty, contributing to gold's rally. Gold jumped 0.85% and the U.S. 10-year Treasury yield gained 0.82%, reaching 3.69%. The U.S. dollar also experienced fluctuations, spiking after retail sales data but later weakening against the Swiss franc.