After struggling over the last week, the gold price has officially overtaken the $2000 mark as the Federal Reserve has projected rate cuts at some point in 2024. Moreover, the price of the metal is up more than 1% on the day with the Fed keeping rates unchanged for the third consecutive month.
Earlier this month, gold had reached its new all-time high, trading at $2150. However, it has been a struggle in recent days, as bears have attempted to take the upper hand. Yet, with the results of the Fed’s most recent policy meeting, the asset has positively responded. Similar upward movements are expected as 2023 comes to a close.
Also Read: Volatility Ahead for Gold Prices as Fed Rate Decision Looms
Gold Price Exceeds $2000 After Federal Reserve Leaves Rates Unchanged
Although a prominent investment option, gold remains a highly volatile asset. Indeed, that has proven to be true over the last several weeks. After reaching new heights in early December, the metal struggled around the $1980 range. However, recent economic developments have seemingly pushed the asset upward today.
Specifically, the gold price has officially overtaken the $2000 mark as the Federal Reserve has predicted rate cuts to come in 2024. Moreover, the Fed concluded their three-day meeting today leaving interest rates unchanged for the third consecutive months. Subsequently, the agency appears to be loosening its most aggressive rate hiking campaign in 40 years.
Also Read: Gold Price Inching Back To $2000 After US Inflation Data
Currently, the metal is trading at $2011, after several days outside of the $1990 range. Moreover, its movement today marks a 1% increase over the last 24 hours. Indeed, its positive performance is almost certainly connected to Federal Reserve action, and signaling, that took place today.
Many have predicted gold to be one of the top performers in 2024, as the economic uncertainty is likely to continue. Indeed, the Fed is still far from its inflation target of 2%. How that continued fight plays out should inform how investors handle the metal and its purchase price.