Zforex
zForex.com Representative
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The gold price surpassed its previous high from the pandemic period, fueled by growing expectations of interest rate cuts in the US in the coming year. Despite the US Federal Reserve's efforts to dampen optimism, the precious metal recorded a rise of more than 3% in early Monday trading, exceeding the previous record set on 7 August 2020. Although most of these gains were later eroded, the gold price continued its rise in early Asian trading, reaching 2,148 points at one point.
The gold price rally that began in early October received a significant boost on Friday. Fed Chairman Jerome Powell's comments that monetary policy had moved "well into restrictive territory" triggered a slump in the dollar and a fall in Treasury yields. This development was particularly favorable for gold, as it is not interest-bearing.
To summarize, the price of gold soared when the markets experienced a positive reassessment by the Fed. Powell's resistance to rate cut expectations remained moderate, potentially providing support for an extension of the gold rally into 2024.
The gold price rally that began in early October received a significant boost on Friday. Fed Chairman Jerome Powell's comments that monetary policy had moved "well into restrictive territory" triggered a slump in the dollar and a fall in Treasury yields. This development was particularly favorable for gold, as it is not interest-bearing.
To summarize, the price of gold soared when the markets experienced a positive reassessment by the Fed. Powell's resistance to rate cut expectations remained moderate, potentially providing support for an extension of the gold rally into 2024.
