by Richard (Rick) Mills
Ahead of the Herd
Gold hit a record-high $2,200 an ounce Thursday, on expectations of interest rate cuts later this year.
[…] At its March meeting, the US Federal Reserve held its federal funds rate at 5.25 to 5.5%, and indicated it would slash interest rates three times (0.25% x 3 = 0.75%) in 2024 despite elevated inflation.
On Wednesday, Fed Chair Jerome Powell said officials would like to see more evidence that prices are coming down, but “it’s still likely in most people’s view that we will achieve that confidence and there will be rate cuts,” he said.
Spot gold set a record $2,222.39 in the early hours of trading Thursday, before settling to $2,206.10 for a 10% gain. US gold futures soared 2.4% to $2,208.20.