Gold rallies to record high after fall in consumer confidence
The post Gold rallies to record high after fall in consumer confidence appeared on BitcoinEthereumNews.com. Gold rallies to a new record high after US Consumer Confidence data falls well below expectations. The data reinforces bets the Federal Reserve will have to take more drastic easing measures – a positive for Gold. XAU/USD is overbought but rallying on all timeframes and, given “the trend is your friend,” it is likely to continue. Gold (XAU/USD) rallies to another record high of $2.670 per troy ounce on Wednesday after an unexpected drop in US Consumer Confidence data on Tuesday increased bets of more aggressive easing and deeper interest rate cuts from the Federal Reserve (Fed). Lower interest rates are positive for Gold, as they reduce the opportunity cost of holding the non-interest-paying asset, making it more attractive to investors. The biggest stimulus push since the Covid pandemic from the People’s Bank of China (PBoC) announced on Tuesday, including aggressive cuts to borrowing costs amongst a package of measures to inflate the flagging economy, also supported Gold’s rise. The escalation of tensions in the Middle East after more bombing by Israel of Hezbollah targets in Lebanon is further pushing safe-haven flows into the yellow metal. Gold rallies after US consumers lose confidence Gold reaches a new peak after more bad news about the US economy suggests the Fed may need to continue drastically cutting interest rates. The Conference Board Consumer Confidence Index fell to 98.7 in September from an upwardly revised 105.6 in August. The result was well below the 103.9 consensus estimate. Following the release of the data, the market-based probabilities of the Fed making another double dose 50 basis points (bps), or 0.50%, rate cut increased to around 60% from 50% before, according to the CME FedWatch tool. Commentary from Federal Reserve Governor Michelle Bowman (voter – hawkish) on Tuesday may have taken some of the edges…
The post Gold rallies to record high after fall in consumer confidence appeared on BitcoinEthereumNews.com.
Gold rallies to a new record high after US Consumer Confidence data falls well below expectations. The data reinforces bets the Federal Reserve will have to take more drastic easing measures – a positive for Gold. XAU/USD is overbought but rallying on all timeframes and, given “the trend is your friend,” it is likely to continue. Gold (XAU/USD) rallies to another record high of $2.670 per troy ounce on Wednesday after an unexpected drop in US Consumer Confidence data on Tuesday increased bets of more aggressive easing and deeper interest rate cuts from the Federal Reserve (Fed). Lower interest rates are positive for Gold, as they reduce the opportunity cost of holding the non-interest-paying asset, making it more attractive to investors. The biggest stimulus push since the Covid pandemic from the People’s Bank of China (PBoC) announced on Tuesday, including aggressive cuts to borrowing costs amongst a package of measures to inflate the flagging economy, also supported Gold’s rise. The escalation of tensions in the Middle East after more bombing by Israel of Hezbollah targets in Lebanon is further pushing safe-haven flows into the yellow metal. Gold rallies after US consumers lose confidence Gold reaches a new peak after more bad news about the US economy suggests the Fed may need to continue drastically cutting interest rates. The Conference Board Consumer Confidence Index fell to 98.7 in September from an upwardly revised 105.6 in August. The result was well below the 103.9 consensus estimate. Following the release of the data, the market-based probabilities of the Fed making another double dose 50 basis points (bps), or 0.50%, rate cut increased to around 60% from 50% before, according to the CME FedWatch tool. Commentary from Federal Reserve Governor Michelle Bowman (voter – hawkish) on Tuesday may have taken some of the edges…
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