Gold Prices Hold Steady Amid Fed Rate Cut Hints

24 Sep 2024 , 09:55 AM

Gold prices maintained steady on Tuesday after reaching an all-time high the day before, following comments by US Federal Reserve officials indicating that fresh interest rate cuts were likely.

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, said on Monday that he expects “many more rate cuts over the next year” as the US central bank seeks a gentle landing for the economy, controlling inflation without collapsing the labour market.

Fed futures traders have priced in 75 basis points of rate decreases by the end of the year, according to CME FedWatch.

Spot gold was flat at around $2,625.52 per ounce. Bullion reached a new high of $2,635.29 on Monday. Gold futures nudged down 0.1% to $2,650.30.

U.S. policymakers’ statements were scrutinised following the Fed’s half-point rate decrease last week, which marked the start of easing policy.

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