Gold futures (GC=F) are touching new highs in Friday’s trading session, boosted by expectations of a Federal Reserve interest rate cut coming next week. Lower rates often serve as a catalyst for the commodity market.
Yahoo Finance senior business reporter Ines Ferré breaks down the gold’s current price trajectory.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Angel Smith
Video Transcript
Gold is trading near fresh record highs in an anticipation of the Federal Reserve cutting rates next week for the precious metal of the 25 or 50 basis point cut debate.
They both saw more gains to come with more on the commodity moves.
We are joined by Yahoo finances in nez for a Hey, hey Madison.
Yes and gold touching new highs far outperforming the rest of the markets.
Let’s take a look right now.
We’re looking at gold futures of above 2600 per ounce.
You date, gold is up more than 26% compare that to the S and P 500 is up about 17% year to date.
So really outperforming the markets, the fundamentals have been there for a while for gold to go higher.
Central banks buying up gold even though China has paused some of its gold buying.
India has been buying quite a bit of gold interest rates on their way down are also sending gold higher.
More investors are now expecting that the that may cut rates by 50 basis points next week.
The ECB cut its rates again on Thursday.
So that has been positive for gold because lower interest rates means that gold is more attractive to investors because it’s not competing against yield bearing assets.
Now, gold has made a number of highs over since around mid April.
We’ve seen highs here here, here.
We also have been looking at some Pullbacks after those highs.
So you are going to be seeing a little bit of profit taking when it comes to the speaks.
So watch out for some of these uh Pullbacks on the way higher for gold.
But look, some analysts are saying 3000 for gold, uh 2700 for gold.
So it’s expected to go higher.
And by the way, also wanna mention silver up 30% year to date.
Silver has also been been seeing quite a big run out guys.