Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Albanian judge killed in courtroom shooting amid growing...
Hamas co-founder snaps after being questioned on Oct....
Trump directs Hegseth to pay troops during ongoing...
I was kidnapped by Boko Haram, and survived....
Trump announces shakeup at top of WH personnel...
Trump refuses to rule out striking Venezuela. What’s...
Venezuelan Nobel Peace Prize winner María Corina Machado...
Putin praises Trump’s peace efforts as ‘really doing...
War Department launches new counter-narcotics task force under...
Kim Jong Un shows off ‘most powerful’ ballistic...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Investing

Gold Hits Fresh All-time High, Then Pulls Back After Fed Cuts Rates

by admin September 19, 2024
September 19, 2024
Gold Hits Fresh All-time High, Then Pulls Back After Fed Cuts Rates

The US Federal Reserve reduced its benchmark interest rate for the first time in four years on Wednesday (September 18), beginning its cutting cycle with a sizeable 50 basis point reduction.

The Federal Open Market Committee has held rates steady since July 2023 after starting to hike in March 2022.

Speaking at a press conference after the decision, Fed Chair Jerome Powell said the US economy has come into balance, which means the time has come to cut rates. He added that the cut puts the central bank in a good position to respond quickly with changes should inflation begin to reverse or should the labor market deteriorate.

When asked if the Fed made a larger cut because it’s trying to catch up, Powell said the central bank hasn’t fallen behind — instead it’s taking strong measures to avoid falling behind. He suggested that the committee has been patient in making its policy decisions and said he believes that keeping rates higher for longer has benefited the US economy.

Powell added that while the upside risk to inflation has decreased, the downside risk to employment markets has increased. He also indicated that he is encouraged by inflation coming closer to the Fed’s 2 percent target, but said more data will be needed to demonstrate inflation is sustainably within the target range before declaring victory.

The 12 Federal Open Market Committee members were not unanimous in their decision, with Fed Governor Michelle Bowman casting the sole dissenting vote, indicating that she would have preferred a 25 point reduction.

It marks the first time since 2005 that a governor has voted against a policy change. Powell said there was good discussion at the meeting, suggesting that despite the difference of opinion there was also much common ground.

Dr. Stephen R. Foerster, professor of finance at the Ivey School of Business, said a 50 point cut will provide a more stimulative effect on the American economy, but highlighted the impact won’t be known immediately.

Ultimately, the cut could be a boon for commodities investors. “Rate cuts often make commodities more attractive on a relative basis. Lower rates lower the cost of carrying inventories which should increase commodity prices,” Foerster said.

In the longer term, Saidel-Baker sees up to 100 points of total cuts between now and the first half of 2025, a viewpoint that’s at odds with the broader market expectation of 200 points.

Markets saw increased volatility following the Fed’s announcement. The S&P 500 (INDEXSP:INX) was down by 0.29 percent to 5,618.25 points, while the Nasdaq-100 (INDEXNASDAQ:NDX) fell 0.45 percent to 19,344.49 points and the Dow Jones Industrial Average (INDEXDJX:.DJI) closed just 0.25 percent lower to 41,503.11 points.

Precious metals were volatile, with gold peaking during afternoon trading at US$2,599 per ounce; it ultimately retracted and at 4:00 p.m. EDT was down 0.48 percent to US$2,557.16. Likewise, silver saw a sharp gain following the announcement to trade above the US$31 per ounce mark, but ultimately shed 2.04 percent to US$30.05.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Latest Drilling Confirms Deeper Mineralised Trends at Lo Herma
next post
Majority of Black swing-state voters back Harris, as Trump makes inroads with Black men: poll

You may also like

Sarama Outlines Extensive Gold Trends at Cosmo Gold...

June 10, 2025

Exploration Agreement with English River First Nation Signed...

August 24, 2024

Chris Vermeulen: Next Gold Targets and “Sweet Spot”...

December 17, 2024

Crypto Market Recap: Trump Seeks Blockchain Integration in...

March 21, 2025

Los Andes Copper Announces Expansion of Land Package

April 3, 2025

NorthStar Gaming to Host Q2 2025 Earnings Webinar...

August 8, 2025

Coniagas Battery Metals Holds First Closing of Private...

August 31, 2024

NVIDIA Commits US$100 Billion to OpenAI in Landmark...

September 23, 2025

Bold Ventures Receives Exploration Permits for the Burchell...

August 28, 2025

Top 3 US Lithium Stocks of 2025

July 25, 2025

Recent Posts

  • Albanian judge killed in courtroom shooting amid growing anger over justice system reforms
  • Hamas co-founder snaps after being questioned on Oct. 7 aftermath: ‘Go to hell’
  • Trump directs Hegseth to pay troops during ongoing government shutdown standoff as he rails against Schumer
  • I was kidnapped by Boko Haram, and survived. No thanks to the West’s silence
  • Trump announces shakeup at top of WH personnel office

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (937)
    • Investing (3,171)
    • Politics (3,881)
    • Stock (4)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 Sightful Invest. All Rights Reserved.