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Gold Back at $1,500 Ahead of Fed as Global Rate Cuts Continue 

CommoditiesOct 24, 2019 03:13PM ET
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Investing.com – The lower-for-longer drumbeat is playing at most global central banks, paving the path for gold’s return to the $1,500 perch after a two-week gap. Expectations grew that the Federal Reserve will add to the rhythm with its own rate cut next week.

U.S. gold futures for December delivery settled up $9, or 0.6%, at $1,504.70 per ounce. In post-settlement trade, it was up $10.35, or 0.7%, at $1.506.05 by 2:52 PM ET (18:52 GMT).

Spot gold, which tracks live trades in bullion, was up $11.42, or 0.8%, at $1,503.38.

It was gold’s first return to $1,500 levels since Oct. 10 and came as rate cuts at Bank Indonesia and the Central Bank of Turkey overnight underlined the global trend of lower interest rates. The U.S. central bank’s own Oct. 29-30 policy decision is likely to yield in a third-straight quarter-point easing, Investing.com’s Fed Rate Monitor Tool shows.

Also supporting gold was the slump in Japan’s manufacturing activity, which fell at the fastest rate in three years. Manufacturing data also stayed near stagnation in the euro zone, according to surveys by IHS Markit. The U.S. PMI defied expectations for a decline and rose fractionally, but that didn’t stop gold adding to its gains as the morning progressed.

“Gold is holding the $1,500 area, well supported by investor worries about the global economy, which includes China-U.S. tariff talks, and, of course, the upcoming Fed meeting and likely rate cut there as well,” said George Gero, precious metals analyst at RBC Wealth Management in New York.

In the euro zone, Mario Draghi, whose negative interest rate policy has done much to propel gold this year, retired as European Central Bank President after an eight-year tenure, handing over to former IMF Managing Director Christine Lagarde, who has said she wants a strategic review of ECB policy before deciding its next course of action.

Gold Back at $1,500 Ahead of Fed as Global Rate Cuts Continue 
 

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Comments (3)
nacir dahoua
nacir dahoua Oct 24, 2019 4:07PM ET
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Sell at 1503.982 or wait the hight price 1504.657 take profit 1488.065 don’t ask me why
paul riksen
paul riksen Oct 24, 2019 4:07PM ET
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why
brad merck
brad merck Oct 24, 2019 4:07PM ET
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you are funny
Karabo Lekhuleni
Karabo Lekhuleni Oct 24, 2019 4:06PM ET
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what does this mean for the dollar?
Bobby Bucklew
Bobby Bucklew Oct 24, 2019 4:00PM ET
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rate cuts... just what the world needs. /sarc.
 
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