Gold Recovers After Sharp Drop Following Fed's Decision
Forex - Gold prices fell after the Fed reduced interest rates by 25 basis points but signaled fewer cuts next year, leading to an increase in the US dollar and bond yields. Following yesterday's sharp decline, there is a dominant trend of bargain hunting today. While the Fed expects inflation to be higher than previously anticipated, new projections indicate only a two-quarter point rate cut by 2025. In the September meeting, the Fed had projected a four-quarter point reduction. Analysts at Peak Trading Research stated, "The Fed's hawkish shift means we will have to contend with a strong dollar until 2025." Investors are now awaiting US GDP and PCE inflation data, which could further shape the path of monetary policy next year. After seeing a peak at $2583.56 per ounce this morning, gold prices rebounded to $2622.70, currently up by 1.1% at $2620.51 compared to yesterday.