iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold Rises Post-Fed Cut, Weekly Decline Looms

8 Nov 2024 , 10:26 AM

With a cooling labour market and strong economic growth, the Federal Reserve’s much-awaited quarter-point rate decrease helped gold prices continue their advances on Friday.

Spot gold was up 0.1% to $2,708.89 an ounce, but it had lost about 1% of its value this week.

At $2,716.4, U.S. gold futures increased by 0.4%.

Taking note of a “generally eased” labour market, the U.S. central bank cut the benchmark overnight interest rate to the 4.50%-4.75% range Thursday at the conclusion of its two-day policy meeting.

Gold prices recovered losses following Donald Trump’s victory in the U.S. presidential election, rising more than 1% in the previous session.

Bullion tends to flourish in an atmosphere with low interest rates and is regarded as a hedge against economic risks.

As inflation approaches the 2% target and tight monetary policy is reevaluated, Fed Chair Jerome Powell stated that the central bank will review data to modify the “pace and destination” of rates.

In the meantime, figures released Thursday revealed that Americans’ new unemployment benefit applications increased marginally over the previous week, suggesting little shift in the labour market and bolstering the idea that October job growth was hampered by hurricanes and strikes.

According to traders, there is now a 74% possibility that rates will drop by 25 basis points in December, which could be the third rate cut this year.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • Federal reserve
  • gold
  • interest rates
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.