Gold prices rose to an all-time high on Wednesday after the Federal Reserve cut interest rates by 50 basis points.
Spot gold rose 0.9% to $2,592.39 an ounce, before retreating to $2,566.92 at the time of writing.
US gold futures rose 0.2% to settle at $2,598.60.
The US central bank began what is expected to be a steady easing of monetary policy by cutting borrowing costs by half a percentage point on Wednesday.
Another cut
Policymakers expect the Fed’s benchmark interest rate to fall another half percentage point by the end of this year and another full percentage point in 2025.
Low interest rates reduce the opportunity cost of holding non-yielding gold and weigh on the dollar, making gold cheaper for investors holding other currencies.
The dollar fell 0.5% after the US Federal Reserve’s decision to its lowest level since July 2023 against a basket of rival currencies, before recovering some of its losses.
Other minerals
As for other precious metals:
- Spot silver fell 1.61% to $30.17 an ounce after hitting an all-time high on Monday.
- Platinum was steady at $981.10 an ounce before falling 0.74% to $947.15.
- Palladium fell 4.22% to $1,068.
Source : Reuters + cnbc + Websites
