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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Gold & silver

Gold hovering at all-time highs in anticipation of Fed rate cut

The rally on gold prices shows no sign of letting up, with the precious element touching all-time highs of U$2,580 (£1,951) on Tuesday.

It comes amid expectations of an interest rate cut from the US Federal Reserve on Wednesday, with the most dovish of forecasts anticipating a jumbo 50-basis-point cut to the bank rate.

A rate cut of this size would simultaneously reduce the attractiveness of the money markets and add to remaining, albeit heavily reduced, fears of inflation in the US economy.

Further supporting the price of gold, central banks appear to have a continuing appetite for the commodity.

Alongside large-scale buying from India and China, SP Angel today noted that Saudi Arabia appears to be buying gold in preference to US dollars.

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