Gold Approaches Record Highs on Fed Rate Cut Speculation and Weakening Dollar

Published on Nov 29, 2023 13:22

Gold neared the record highs of $2085 an ounce hit in the month of May as US Dollar dived to over a three-and-half-month low amid rising bets for a series of rate cuts by the Federal Reserve in 2024. Growing expectations for a series of rate cuts by the Federal Reserve in 2024 gained momentum after remarks by Federal Reserve Governor Christopher Waller, who expressed confidence that current policy is well-positioned to address inflation and slow the economy. Despite Waller`s stance, other Fed officials, such as Bowman, emphasized the need for further rate hikes to achieve inflation targets. Meanwhile, Australia`s monthly inflation gauge revealed a slower-than-expected growth in October. Investors are now turning their attention to key economic indicators, including US third-quarter GDP figures and the PCE price index, to gauge the Fed`s stance on inflation. The dollar index that measures the greenback against a basket of currencies was trading at 102.56. The MCX gold futures for February are inching closer to the Rs 63000 mark. As of the latest update, the gold futures are trading at Rs 62719 per 10 grams, down Rs 3.