What's the Gold Final Trend to 50BP Rate-Cutting?
Hello everyone! Today i want to share some macro analysis with you!
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$Gold - main 2412(GCmain)$ Wednesday (September 18) the New York session of the gold market fluctuated violently, after the Federal Reserve cut interest rates by 50 basis points, spot gold once refreshed a new record high, but Powell's speech made the price of gold from the highs fell sharply, and once fell below 2550.
The Fed did initiate a rate cut on Wednesday as expected, announcing a 50 basis point cut. The Fed also expects the federal funds rate to be around 4.4% by the end of 2024.
Fed policymakers decided to lower borrowing costs because they are increasingly confident that inflation is moving ‘sustainably’ towards the Fed's 2 per cent target. However, they acknowledged that the twin missions of price stability and maximum employment were roughly balanced, while noting that the economic outlook was uncertain.
After the Fed cut interest rates by 50 basis points, spot gold once soared to 2600.15, a record high. But after Powell's speech, gold prices tumbled, falling as low as 2,546.79. Powell said at a news conference not to think that the 50 basis point rate cut ‘is a new pace of rate cuts.’ $XAU/USD(XAUUSD.FOREX)$
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