GOLD Record High in International Market: The reduction in interest rates by the US Federal Reserve after 4 years is having a strong impact on the international gold market.
After this reduction, the price of gold has reached a record high in the international market. Gold has crossed the level of $ 2,600 per ounce for the first time and is trading at the level of $ 2603 per ounce.
For the first time since the Corona outbreak, the US Federal Reserve has cut interest rates by 50 basis points with the intention of supporting the American labor market.
In the two-day meeting of the US Fed, 18 representatives supported the reduction of interest rates by 50 basis points while only one representative was against this proposal.
The US Fed is scheduled to have two more meetings in 2024 itself, in which a decision to further cut interest rates can be taken.
Gold prices reached a record high
The dollar index softened due to the reduction in interest rates by the US Fed. Along with this, the treasury yield also fell, due to which the price of gold in the international market rose by 1.27 percent.
It was already being predicted that if the US Fed decides to cut interest rates, then the price of gold may rise in the international market.
As per earlier predictions, after the US Fed’s decision, the price of gold increased in the international market.
It is noteworthy that even before the US Fed’s decision, gold has been continuously setting new records in the international market. Due to the increasing tension in Central Asia and the Russia-Ukraine war, the gold market has already seen a lot of growth this year.
Gold has so far registered a gain of more than 24 percent in the international market. In such a situation, due to the reduction in both interest rates in America, the price of gold has reached a record high.
The dollar is expected to lose strength
However, market experts say that this rise in the price of gold may prove to be temporary. Because if the dollar index rises again and there are signs of improvement in the US economy, then investors may once again turn towards gold.
If this happens, gold may slip below its record high. However, as interest rates have started to be cut, the strength of the dollar is also expected to decrease.
When this happens, there is usually a fear of recession in the economy, which leads people to turn to gold as a safe investment.
Experts say that the actual impact of the reduction in interest rates in the US on the market will be known only after one to two weeks. Before this, any change in the market is not expected to be sustainable.
