Gold Roundup For May 20: Price Reaches Record High Amid Expectations of Fed Rate Cuts
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1689908174-9faf6667811c41afb3d3a38ff4af9b30.jpg)
Getty Images
Key TakeawaysThe spot price of gold reached a record high above $2,450 per ounce early Monday morning.Inflation data from last week has raised hopes that the Federal Reserve could cut rates this year.Scheduled comments from a number of Fed officials could impact the price of gold, along with fresh economic data and geopolitical events.
The spot price of gold reached a record high above $2,450 per ounce early Monday morning, before sliding to $2,435.28 by 2 p.m. ET as markets continued to digest economic data from last week that raised hopes the Federal Reserve could move to cut interest rates, though Fed officials cautioned they may need more data on inflation before cutting rates.Scheduled comments this week from a number of Fed officials could impact the price of gold in the days to come, along with fresh economic data and geopolitical events.Markets Still Pricing in Expectations of Rate CutsLast week's report on consumer prices showed inflation slowed in April, raising hopes the Fed may be encouraged to lower borrowing costs, though Fed policymakers have cautioned several times over the last month that they would need more data on inflation before cutting rates, and some have said that raising rates is still possible.Market participants are currently pricing in an over 63% chance of rates being cut at the Fed's September meeting, and a more than 74% chance of rates being cut at the Fed's November meeting, according to the CME's FedWatch Tool, based on fed funds futures data.Purchases by China's Central Bank and Geopolitical Events Could Drive Gold HigherPurchases by China's central bank could help sustain gold's rise in price, with the The World Gold Council (WGC) recently reporting China's central bank was one of the top buyers of gold in the first quarter compared to other central banks.Concerns about geopolitical risks in the Middle East and Eastern Europe could also impact the price of gold, raising demand for traditional "safe haven" assets. The death of Iranian President Ebrahim Raisi and worries about his death's implications in the Middle East was another factor that drove the price of oil higher Monday, The Wall Street Journal reported.
TradingView
Read the original article on Investopedia.
Welcome to Billionaire Club Co LLC, your gateway to a brand-new social media experience! Sign up today and dive into over 10,000 fresh daily articles and videos curated just for your enjoyment. Enjoy the ad free experience, unlimited content interactions, and get that coveted blue check verification—all for just $1 a month!
Account Frozen
Your account is frozen. You can still view content but cannot interact with it.
Please go to your settings to update your account status.
Open Profile Settings