Tuesday, December 26, 2023
HomeFinancial AdvisorGold Pushes Higher On Expectations For Fed Rate Cuts Next Year

Gold Pushes Higher On Expectations For Fed Rate Cuts Next Year

Gold ticked higher as the final week of the year got under way, with traders looking ahead to interest rate cuts from the Federal Reserve in 2024 and a weaker US currency.

Bullion is trading near a record high, heading for its first annual increase in three years, as data showing US price pressures easing reinforces expectations for multiple rate cuts in 2024.

A report last week showed the Fed’s preferred gauge of underlying inflation barely rose last month and — by one measure — even trailed the policymaker’s 2% target.

Swaps markets are now pricing in a more than 80% chance of a cut by March, which would be bullish for non-interest bearing assets like gold, though some central bank officials have pushed back on the prospect of early easing.

Gold rose 0.6% to $2,064.45 an ounce as of 6:33 a.m. London time, after climbing 1.7% last week. Bullion closed at a record $2,072.22 on Dec. 1. The Bloomberg Dollar Spot Index was 0.1% lower. Silver and palladium gained, while platinum was steady.

This article was provided by Bloomberg News.



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