Gold $2,645.65 0.29
Silver $31.82 1.22
Platinum $981.42 1.52
Palladium $1,024.09 -2.58
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Gold Prices Reach Record High as Expectations for Fed Rate Cut Rise

Posted on September 13, 2024
Writer: James Miller

On Thursday, gold spot prices reached $2,554.05 per ounce, rising by 1.7%. The market anticipation of a forthcoming Fed interest rate cut spurred this new record. U.S. gold futures also climbed by 1.5% to settle at $2,580.60.

This rise aligns with recently released U.S. economic data showing a slowdown, which bolsters expectations of reduced interest rates, enhancing gold’s attractiveness as an investment.

The shift towards a potentially lower interest rate environment has markets factoring in a high chance of a 25-basis-point rate cut by the Fed in their next meeting. According to experts, such a financial landscape is beneficial for gold, which is traditionally favored in low-interest rate conditions due to its zero yield.

The labor market’s apparent weakening is also a sign that the Fed might embark on prolonged rate cuts, further supporting gold’s appeal.

Meanwhile, in related markets, palladium rose by 4.1%, and platinum increased by 3%, influenced partly by geopolitical tensions and statements over potential Russian export limits on critical metals. Silver also gained significantly, rising by 3.7% to $29.76 per ounce.


James Miller

James Miller is a Senior Content Writer at McGruff.com. He has a background in investing and has spent most of his career in the financial industry. He can trace his family tree back to the California Gold Rush when his ancestors risked it all to make it big in the west. He feels like he's following in their footsteps as he strives to make sense of today's gold market.

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