Home Business News Fed policy stance boosts gold’s appeal

Gold prices experienced a strong rebound and raked gains on Wednesday and on Thursday after a weak start this week.

The precious metal reversed course after the Federal Reserve’s meeting which served as a confirmation for interest rate cuts starting next year.

The prospects of lower interest rates in the US exerted pressure on the dollar and bond yields and simultaneously improved the allure of non-yielding assets like gold.

Tax deductions: Keep more of your money

As bond yields decline and interest rate cuts start next year with monetary policy shifting, gold could see an increasingly positive performance.

The deteriorating economic conditions in the euro area and the UK could also draw investors toward safe-haven assets like gold which offer a hedge against escalating risks.

Geopolitical tensions in Europe and the Middle East could also remain a factor supporting gold. At the same time, expectations of strong demand from central banks could continue to boost gold’s performance.

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]