{"id":2210529,"date":"2024-04-01T11:47:02","date_gmt":"2024-04-01T15:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gold-prices-break-all-time-record-as-investors-bet-on-fed-rate-cuts\/"},"modified":"2024-04-01T11:47:50","modified_gmt":"2024-04-01T15:47:50","slug":"gold-prices-break-all-time-record-as-investors-bet-on-fed-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gold-prices-break-all-time-record-as-investors-bet-on-fed-rate-cuts\/","title":{"rendered":"Gold prices surged to an all-time high as investors placed bets on potential Fed rate cuts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">32<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgold-prices-break-all-time-record-as-investors-bet-on-fed-rate-cuts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2210529&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Gold prices reached new heights on Monday due to a positive inflation \u200breport, fostering hopes of a Federal Reserve interest rate\u200c cut in\u200b June. This increase saw gold futures trading at $2,275, \u2063reflecting a \u200d$37 rise. Expectations of imminent rate adjustments by the\u2064 Fed,\u2064 supported by recent inflation figures, have\u200c bolstered investor confidence in gold. Gold\u200c prices soared to \u2063new levels on Monday following a favorable inflation report, leading to expectations of a\u200b Federal Reserve interest rate reduction in June. This surge pushed gold futures to\u200b $2,275, showing a $37 increase. Investor confidence in\u2063 gold has \u200cstrengthened due to anticipated Fed\u2063 rate adjustments, backed by recent inflation data.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>Gold prices set a new record on Monday as a <a href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/2943909\/inflation-rose-slightly-to-2-5-in-february-in-gauge-preferred-by-fed\/\" target=\"_blank\" rel=\"noopener\" title>recent inflation report<\/a> buoyed optimism that the Federal Reserve will cut interest rates in June.<\/p>\n<p>Gold futures on Monday were trading at $2,275, up about $37 or just over 1.6% \u2014 the highest price since the contract\u2019s creation in the 1970s. The upward momentum is in large part due to expectations that the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\" target=\"_blank\" rel=\"noopener\" title>Fed<\/a> may cut <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\" target=\"_blank\" rel=\"noopener\" title>interest rates<\/a> soon, an action that would be expected to boost asset prices.<\/p>\n<p>Driving some of the sentiment about rate cuts is Friday\u2019s report on the personal consumption expenditures index, which is the Fed\u2019s preferred gauge of inflation.<\/p>\n<p>From January to February, inflation rose 0.3%, which was slightly less than expected.<\/p>\n<p>Core PCE inflation, a measure of inflation that strips out volatile energy and food prices, fell slightly to a 2.8% year-over-year rate.<\/p>\n<p>Following the release of the Friday report, Fed Chairman Jerome Powell said it is \u201cgood\u201d that the data \u201cis pretty much in line with our expectations.\u201d <\/p>\n<p>\u201cInflation data, and Powell\u2019s comments in particular, have provided a further boost to gold, with the market becoming increasingly convinced that the Fed will start to cut rates in June,\u201d Warren Patterson, the head of commodities strategy at ING Groep NV, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-04-01\/gold-xauusd-hits-record-on-fed-cut-outlook-and-geopolitical-tension?srnd=homepage-americas\" target=\"_blank\" rel=\"noopener\" title>told<\/a> <em>Bloomberg<\/em>. He said, though, \u201cit wouldn\u2019t take much of a catalyst to see a pullback in the short term.\u201d<\/p>\n<p>Too-high interest rates could suppress investment and slow demand. That is why investors are hoping for an interest rate cut, as is President Joe Biden.<\/p>\n<p>Biden has been working hard to convince voters that he is a good steward of the economy. Inflation has been coming down, but it remains high by historical standards, and voters have expressed their discontent with the higher prices.<\/p>\n<p>Biden has been highlighting the objectively good metrics of the economy, such as low unemployment and robust gross domestic product growth. <\/p>\n<p>Just a few months ago, investors were optimistic that the Fed was going to cut rates up to six times this year, with the first rate cut coming in March. Higher inflation reports have dashed those hopes, but now investors are hoping that the Fed\u2019s June meeting will be when the long-awaited pivot finally occurs.<\/p>\n<p>Investors are implying a probability of over 61% that the Fed will end up cutting interest rates by the time its June meeting has concluded, according to the CME Group\u2019s FedWatch tool, which calculates the probability using futures contract prices for rates in the short-term market targeted by the Fed. But that is a very fluid projection.<\/p>\n<p>The FedWatch tool is pegging about a 1 in 4 chance that the Fed\u2019s rate target will be held at its current level of 5.25% to 5.50%, even after its July meeting.<\/p>\n<p><strong><a href=\"https:\/\/washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/strong><\/p>\n<p>Economists from Oxford Economists said in a note that \u201cbarring any major downside surprises, we anticipate the Fed will wait for a few more months of data before cutting.\u201d<\/p>\n<p>\u201cWe will push back the first rate cut in our forecast to June, though we still anticipate three cuts this year,\u201d the economists said.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices hit a new high on Monday following positive inflation data, fueling expectations of a June interest rate cut by the Federal Reserve. Gold futures reached $2,275, a $37 increase or over 1.6%, marking the highest level since the 1970s. This upward trend reflects investor confidence in potential rate adjustments by the Fed<\/p>\n","protected":false},"author":2683,"featured_media":2210530,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/gold-bars-1024x591.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2210529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/wex-s3.s3.us-east-1.amazonaws.com\/wp-content\/uploads\/2024\/03\/gold-bars-1024x591.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2210529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2210529"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2210529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2210530"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2210529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2210529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2210529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}