“Gold fell as comments from Federal Reserve officials over the weekend reinforced views that the U.S. central bank will be more cautious about cutting interest rates this year.”, — write: epravda.com.ua
Gold fell as comments from Federal Reserve officials over the weekend reinforced views that the U.S. central bank will be more cautious about cutting interest rates this year. Bloomberg writes about it. Gold is trading near $2,640 an ounce after San Francisco Fed President Mary Daley and Fed Chair Adriana Kugler stressed the need to end the fight against inflation and reach the 2% target. Lower rates tend to favor gold because it doesn’t pay interest. Last month, the Fed limited the number of rate cuts it plans to make in 2025 as Chairman Jerome Powell expressed more caution about how quickly policymakers can continue to cut borrowing costs. That could be a headwind for the precious metal after its record 27% rally last year, fueled in part by easing U.S. monetary policy.Advertisement: Recall: Gold prices hit a three-week high on Friday, supported by a weaker dollar and demand for safe-haven assets, while markets brace for possible economic and interest rate changes due to US President-elect Donald Trump’s proposed policies.