Daily Gold Market Report

Gold Gains Momentum Following Fed’s Rate Hold
Markets Anticipate Rate Cuts and Lower Inflation

(USAGOLD – 12/14/2023) Gold prices are continuing upwards this morning even as the European Central Bank continues to hold interest rate steady. Gold is trading at $2038.71, up $10.97. Silver is trading at $24.13, up 32 cents. Gold prices increased by over 1% yesterday following the U.S. Federal Reserve’s announcement of a potential end to its interest rate hikes and the possibility of rate cuts in the coming year. Spot gold rose to around $2,027 per ounce. The Federal Reserve maintained current interest rates, with projections suggesting a decrease by the end of 2024. The Fed’s recognition of diminishing inflationary pressures and expectations of interest rate cuts led to a drop in yields and the dollar, boosting gold and silver prices. The dollar index fell 0.6%, making gold more affordable for international buyers. Market expectations now lean towards a 60% chance of U.S. rate cuts by March 2024. This scenario enhances the attractiveness of gold. Federal Reserve Chair Jerome Powell noted that inflation has eased without a significant increase in unemployment, though the full impact of monetary tightening may not be fully realized yet. Recent data showed stable U.S. producer prices in November, signaling a continued decrease in factory-gate inflation. Gold’s future movements could be influenced by upcoming policy meetings of the European Central Bank and the Bank of England. Meanwhile, prices of silver, platinum, and palladium also experienced increases.