Gold Roundup For May 17: Price Nears All-Time High Amid Hopes of Fed Rate Cuts
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Key TakeawaysThe spot price of gold climbed above $2,400 an ounce Friday, nearing its all-time high reached in April.Recent gains for gold have been fueled in part by economic data raising hopes the Federal Reserve could move to cut interest rates.Surging gold prices have helped boost gold mining stocks like Newmont Corporation.
The spot price of gold climbed above $2,400 an ounce Friday to $2,417.54 as of 2:50 p.m. ET, nearing an all-time high reached in April. The recent gains for gold have been fueled in part by economic data suggesting inflation may have slowed enough for the Federal Reserve to cut interest rates soon.Hopes of Fed Rate Cuts Help Send Gold HigherThis week's report on consumer prices showed inflation slowed in April from the month before, lifting optimism the Fed may be prepared to lower borrowing costs as the economy slows. In addition, a report showed retail sales in April were virtually unchanged from the month before and well below expectations, leading to speculation that consumers may be pulling back. Today, the Conference Board said its Leading Economic Index declined 0.6% in April from March, in another sign the U.S. economy is slowing.Gold Miner Stocks Boosted by Surge in Gold PriceThe recent gains for gold have helped drive up prices of gold miner stocks such as Newmont Corporation (NEM), with its shares on pace to close at their highest level since last summer. The World Gold Council said Thursday that higher gold prices have helped ease pressures on producers' margins, though producers' costs have climbed as well.
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