Gold Price May Slip If Fed Cuts Only 25 BPS, Yet a Rally Is Expected

Tuesday, 17 September 2024, 14:55

Gold price may slip if the Federal Reserve only cuts rates by 25 bps, according to Goldman Sachs. Investors are on alert as futures decline amidst the central bank's decision. However, Goldman sees an eventual rally in gold prices over the longer term.
Seekingalpha
Gold Price May Slip If Fed Cuts Only 25 BPS, Yet a Rally Is Expected

Gold Price Outlook Amid Fed Decisions

Gold price may experience a short-term dip if the Federal Reserve implements a mere 25-bp rate cut. Market analysts are closely watching the central bank's upcoming decision as it could influence investor sentiment.

Investor Reaction to Rate Decisions

As gold futures navigate through uncertainty, investors might adjust their strategies based on the Federal Reserve's expected actions. A minimal rate cut could lead to a slight decline in gold prices.

Long-Term Expectations for Gold

Despite the anticipated near-term setback, Goldman Sachs projects that gold will rally in the future. This outlook is based on a broader analysis of market conditions and economic indicators.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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