US Fed rate cut & its impact on gold demand!
The gold price immediately recorded a record-high spike Dean Belder, the market analysts said, “gold nearly breached the US$2,600 mark, while silver was above US$31 following half point cut by the US Federal Reserve. The US Federal Reserve reduced its benchmark interest rate for the first time in four years on Wednesday (September 18), beginning its cutting cycle with a sizeable 50 basis point reduction. The Federal Open Market Committee has held rates steady since July 2023 after starting to hike in March 2022.” Colin Shah, MD, Kama Jewelry said, “The higher-than-expected 50bps rate was cut by the US Fed after four years of strict maintenance of elevated rates to tame inflation. This rate cut comes at an opportune time and is also an influence of the slight dip in unemployment in the US. The gold price immediately recorded a record-high spike, as a reflection of the announcement. This scenario must be taken positively as the rate cut has opened doors for gold to scale new