GOLD
Gold prices soared to an all-time high in early Asian trading this Thursday. The surge followed the Federal Reserve's confirmation of its commitment to rate cuts. Recent economic indicators, including persistent inflation and robust US economic data, had clouded the economic outlook, leaving investors uncertain about the central bank's stance on interest rates. However, yesterday's confirmation served as a release valve, sparking a surge in risk appetite across stock markets. Both the S&P500 and NASDAQ hit record highs, while the dollar weakened, providing a significant boost to gold prices. With lower interest rates now virtually assured, beginning possibly as early as June, treasury yields are expected to decline, and the dollar to soften further, creating further upside for bullion. Nevertheless, this upside may be tempered by reduced demand for safe-haven assets, as optimism about a soft landing for the US economy is likely to fuel further risk appetite in the financial markets.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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