Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

Gold prices hit another record high after fresh U.S. data spurs Fed cut expectations

by April 4, 2024
April 4, 2024
Gold prices hit another record high after fresh U.S. data spurs Fed cut expectations

Gold prices extended their rally and scaled to another record high on Monday, propelled by U.S. interest rate cut expectations and the metal’s appeal as a safe haven asset.

Spot gold added 0.6% to trade at $2,245.79 per ounce. U.S. gold futures rose more than 1% to trade at $2,266.39 per ounce.

“I think it’s a really exciting moment in gold,” said Joseph Cavatoni, market strategist at the World Gold Council told CNBC on Monday. “What’s really driving it is, I think, many market speculators really getting that confidence and comfort [in] the Fed cuts,” he said.

Market watchers are expecting the U.S. Federal Reserve to cut rates in May or June.

The key Fed inflation gauge for February climbed 2.8% year-on-year, according to data released last Friday — likely to keep the U.S. central bank on hold before it can start considering interest rate cuts.

The Fed stood pat on interest rates at the conclusion of its recent March meeting, but stuck with its forecast for three interest rate cuts this year.

Gold prices tend to share an inverse relationship with interest rates. As interest rates fall, gold becomes more appealing compared to fixed-income assets such as bonds, which would yield weaker returns in a low-interest-rate environment. 

Bullion prices were also driven higher by overseas demand, according to Caesar Bryan, portfolio manager at investment management company Gabelli Funds.

“In China, private investors have been attracted to gold because the real estate sector has done poorly,” Bryan said, adding that China’s general economy has remained weak and its stock market and currency have not been performing well.

The gold rally so far has been fueled by robust purchases from the world’s central banks in a bid to diversify reserve portfolios due to geopolitical risks, domestic inflation and U.S. dollar’s weakness, said Cavatoni from the World Gold Council.

“Really strong case for them to continue to buy … [but] let’s see if they continue to be as large and for as long,” he added.

China is the leading driver for both consumer demand and central bank gold purchases, according to data from the WGC.

This post appeared first on NBC NEWS
previous post
Russia says new South Korean sanctions are ‘unfriendly,’ will respond
next post
Trump’s $175M bond backer is a subprime car loan billionaire who has run afoul of regulators

Related Posts

Denny’s set to close dozens more locations this...

February 16, 2025

Amazon and Nvidia say AI data center demand...

April 24, 2025

The trucking industry hits the brakes with tariffs...

April 24, 2025

JPMorgan CEO Jamie Dimon hopes for soft landing...

April 30, 2024

Amazon and Nvidia say AI data center demand...

April 24, 2025

Google forcing some remote workers to come back...

April 24, 2025

Key fed inflation gauge cools to its slowest...

June 28, 2024

Three-year inflation outlook hits record low in New...

August 13, 2024

Tariff threat looms over the year’s biggest electronics...

January 9, 2025

American liquor exports hit record high in 2024,...

April 25, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • Iran still wants a nuclear weapon despite ‘serious damage’ from US, Israeli strikes: expert warns

      July 6, 2025
    • Democrats project doom and gloom, not celebration, with July 4 messages

      July 5, 2025
    • Xi Jinping’s surprise no-show at BRICS Summit fuels speculation about China’s global standing

      July 5, 2025
    • Iran regime escalates repression toward ‘North Korea-style model of isolation and control’

      July 4, 2025
    • This July 4th, a family waits: American hostage’s father pleads for son’s freedom from Hamas terrorists

      July 4, 2025
    • President Trump to honor Iran strike flight team at the White House

      July 4, 2025

    Categories

    • Business (1,295)
    • Politics (6,285)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved