Gold Prices Hit Record High, Up 1.7% After Fed Rate Cut on September 22

Sep 23, 2024, 03:02 AM

Gold prices have climbed by 1.7% following the Federal Reserve's recent rate cut on September 22. The precious metal has reached a record high, driven by investor anticipation of upcoming US economic data that may provide further insights into potential future rate cuts by the Fed. Central bank Governor Waller has expressed support for future monetary easing. Additionally, ongoing geopolitical tensions, particularly in the Middle East and Ukraine, along with the approaching US elections, are contributing to gold's appeal as a safe-haven asset. Investors are closely watching the Fed's preferred inflation measure, with net-long positions in gold hitting a four-year high. The rise in gold prices also signals concerns about loose monetary policy.