Gold Prices Reached New Highs Amid Rate Cut Speculations

Gold prices registered new highs amid rate cut speculations. Investors turned to the safe haven ahead of the Feds meeting next week bulling the prices up to the $1339 per ounce on Thursday.

Investors are waiting on the Fed’s decision next week whether to keep rates unchanged or to cut rates, and the demand on the precious metal these days reflects investors expectation of cutting rates next week. If investors expectation is correct, and Fed’s cut rates next week, then we will see further gains and higher prices of Gold.

Investors expectation was formed based on different political scenarios in the past few days. Starting with President Trump escalating trade wars again with China and demanding them to return to the previous terms they agreed on this year.

We have also seen the Fed’s Chairman, Jerome Powell, announcing their flexibility and openness to easing monetary policy.

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