{"id":2365,"date":"2024-03-25T12:08:48","date_gmt":"2024-03-25T12:08:48","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/25\/gold-price-hits-new-record-of-over-us2200-as-fed-leaves-rates-unchanged\/"},"modified":"2024-03-25T12:08:48","modified_gmt":"2024-03-25T12:08:48","slug":"gold-price-hits-new-record-of-over-us2200-as-fed-leaves-rates-unchanged","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/03\/25\/gold-price-hits-new-record-of-over-us2200-as-fed-leaves-rates-unchanged\/","title":{"rendered":"Gold Price Hits New Record of Over US$2,200 as Fed Leaves Rates Unchanged"},"content":{"rendered":"

The US Federal Reserve left interest rates unchanged at 5.25 to 5.5 percent at this week\u2019s meeting.<\/strong><\/p>\n

The widely anticipated move came after the central bank\u2019s second gathering of 2024, held from Tuesday (March 19) to Wednesday (March 20). The Fed has hiked rates 11 times since March 2022, but this is its fifth pause in a row. <\/p>\n

Looking forward, investors are watching closely to see if the Fed will be able to engineer a soft landing. Although inflation ticked up slightly in February, job growth is looking solid, so many market participants believe it\u2019s feasible. <\/p>\n

Market participants are also keen for clues on when the Fed will cut rates. Its new dot plot, which shows where each official thinks the federal funds rate is headed, shows three cuts of 0.25 percent each are penciled in for 2024. <\/p>\n

\u201cStrong hiring in and of itself would not be a reason to hold off on rate cuts. No, not all by itself,\u201d Powell said after the meeting, although he made no promises that inflation will be tamed in the near term. \u201cMarkets believe we will achieve that goal and they should believe that because that\u2019s what will happen over time, but we stress over time,\u201d he added.<\/p>\n

CME Group\u2019s (NASDAQ:CME) FedWatch tool currently shows more than a 90 percent probability that the Fed will leave rates unchanged at its May gathering, and a 73.1 percent likelihood of a cut in June. <\/p>\n

Powell said the Fed is still on the lookout for \u2018more good data\u2019 to solidify such a decision. <\/p>\n

\n

Markets and gold react to Fed decision <\/h3>\n

US markets reacted positively to the Fed\u2019s announcement, with the Dow Jones Industrial Average (INDEXDJX:.DJI) rising to a record close of above 39,500. Meanwhile, the S&P 500 (INDEXSP:.INX) passed 5,200 for the first time ever, and the Nasdaq Composite (INDEXNASDAQ:.IXIC) climbed by 1.25 percent to reach 16,369.41. <\/p>\n

\u201cWe had some inflation bumps this year but Jerome Powell\u2019s not blinking,\u201d David Russell, global head of market strategy at TradeStation, told CNBC. \u201cInvestors are relieved to see three cuts stay in the dot plot, supporting markets and risk appetite. The Fed might wake up with a hangover, but the punchbowl isn\u2019t going away yet.\u201d<\/p>\n

The gold price also took off after the Fed\u2019s decision, jumping from just above US$2,155 per ounce to more than US$2,200. The yellow metal tends to fare better when rates are lower, and it was also supported by a weaker US dollar. <\/p>\n

Many experts focused on gold believe it\u2019s poised to move higher, even after repeatedly reaching new highs this year. The broad consensus is that the mainstream expectation for a soft landing won\u2019t pan out, and gold will thrive once it becomes clear that other areas of the economy are suffering.<\/p>\n<\/div>\n

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

The US Federal Reserve left interest rates unchanged at 5.25 to 5.5 percent at this week\u2019s meeting. The widely anticipated move came after the central bank\u2019s second gathering of 2024, held from Tuesday (March 19) to Wednesday (March 20). The Fed has hiked rates 11 times since March 2022, but this is its fifth pause […]<\/p>\n","protected":false},"author":0,"featured_media":2366,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-2365","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=2365"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/2365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/2366"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=2365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=2365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=2365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}