Gold Soars on Fed's Dovish Stance

23 Sep 2024 , 10:15 AM

Gold prices stayed near record highs on Monday, as traders enjoyed the momentum generated by the US Federal Reserve’s dramatic interest rate cut and signals that further cuts were on the way.

Spot gold was steady at $2,619.37 per ounce, close to the record high set on Friday. US gold futures nudged down 0.1% to $2,643.90.

The United States Federal Reserve began easing monetary policy on Wednesday with a half-point rate cut, with a further half-point reduction expected by the end of the year, a full point next year, and another half-point in 2026.

Gold and silver prices also rose as the dollar index fell following Fed rate reduction and geopolitical worries. Rising tensions in the Middle East are also driving safe-haven purchases of precious metals.

Gold prices reached lifetime highs, and silver prices rose to two-month highs. Both precious metals are in a long-term bull market and may continue their gains in the coming months.

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