09/19/2024 – 15:07
Gold closed higher on Thursday, the 19th, boosted by the Federal Reserve’s (Fed) interest rate cut. On Wednesday, the 18th, after the closing adjustment, the precious metal reached its highest level in history in electronic trading in New York, at US$ 2,627.20, shortly after the announcement of the monetary decision.
December gold closed up 0.62% at $2,614.60 per troy ounce on Comex, the metals division of the New York Mercantile Exchange (Nymex), setting a new record for the highest closing level.
The precious metal extended gains in the session, with its appeal enhanced after the Fed opted for a more aggressive start to its rate-cutting cycle, cutting rates by 50 basis points (bp). Lower rates bode well for non-yielding assets such as gold.
According to ActivTrades, gold prices could gain further momentum in the coming weeks, eyeing the prospect of additional cuts this year.
TD Securities, in a note, says the gold price action shows that the macro fund’s positioning is extreme. The investment bank says, however, that gold has failed to recover the record levels seen earlier in the week, but that the scenario also shows the increasingly strong correlation between the golden metal and the dollar. *With information from Dow Jones Newswires.
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