Gold Price Soars Past $2,200 as Fed Signals Rate Cuts

Gold’s price climbed past $2,200 an ounce, marking a historic first propelled by investor optimism regarding the Federal Reserve’s stance on interest rate cuts. This optimism has significantly bolstered the attractiveness of gold, which does not yield interest. The metal’s price spiked to an all-time high of $2,220.89, reflecting a surge of over 10% since mid-February. This rally is largely attributed to anticipations of a more lenient U.S. monetary policy, enticing investors to place their bets on gold. Despite the rapid pace of this rally, the Federal Reserve’s recent announcement, maintaining its plan for three rate cuts within the year and its tolerance towards the current inflation and labor market conditions, has reinforced bullish sentiments among gold traders, according to Chris Weston of Pepperstone Group Ltd.