The Upcoming Fed’s Rate Decision and Its Impact on Gold, Oil, and Natural Gas
2024-09-13 10:57:00
On the other hand, oil prices and natural gas are also enjoying a rally after dropping significantly due to supply disruptions.
Fed Cuts to Boost Gold
Following Fed Chair Powell’s confirmation of a rate cut at the Jackson Hole conference, gold prices increased. Gold benefits from lower borrowing costs as it doesn’t pay interest.
The rate at which the Fed will cut is now the question facing the gold market. The latest US jobs data report was mixed, adding to the debate over whether the Fed will deliver a 25bp or a 50bp cut. However, whatever the case is, gold prices can rally to new highs.
Looking at the technical side, gold prices are currently trading at $2569, and the next target is $2600, supported by the 50 and 100 SMA crossover on the 4-hour chart.
If you want to dive deep into forex, stocks, commodities, and cryptos, FXGT market analysis provides expert analysis that filters market noise and reveals what matters most.
This article was originally posted on FX Empire
