Gold prices usually rise in response to Fed rate cuts. When interestrates fall, gold is usually seen as attractive because the market often sees rate cuts as an attempt to avoid a recession ...
History also supports this trend. "From 1966 through 2020, an index of gold prices advanced 8.37% annualized when the Fed was lowering interestrates … compared to 5.53% when raising ...
This is because higher interestrates increase the burden on holding gold as it does not pay a yield ... of the first set of rate cuts by the Fed. It has come very close to breaching the $2700 ...
In March 2022, which was the first time Fed hiked interest, rates on home equity loans stood ... Per Bloomberg reports, shortly after the announcement, gold prices also jumped to record highs.
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