Daily Gold Market Report

Economic Forecasts and Inflation Monitoring:
Key Points from the March 2024 Federal Reserve Meeting

(USAGOLD – 3/20/2024) Gold prices are slightly lower this morning. The market has been relatively calm at the beginning of the week, with traders seemingly holding back in anticipation of the Federal Open Market Committee (FOMC) monetary policy meeting’s conclusion in the afternoon. Gold is trading at $2152.20, down $5.39. Silver is trading at $24.95, up 4 cents. The Federal Reserve is expected to maintain its benchmark interest rate at a range of 5.25% to 5.5% at its March 2024 meeting, while providing fresh clues on the path of future interest-rate cuts. Economists predict that the FOMC will pencil in three rate cuts for 2024, as policymakers discuss slowing the balance-sheet unwind. The Fed is focused on addressing stubborn inflation and monitoring a slowly rising jobless rate, with the “dot plot” of individual member’s interest rate expectations indicating three cuts in 2024, four in 2025, three more in 2026, and two more at some point to take the long-range federal funds rate down to around 2.5%. The FOMC will release its quarterly update on the economy, specifically for gross domestic product, inflation, and the unemployment rate, with a focus on inflation and its effect on expectations for rates. As oil prices continue to rise and with gold prices near all time highs the Fed has their hands full.