Powell's Fed Signals: Rate Cut, Inflation Goals, and What's Next for Gold and Stocks.
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The Federal Reserve, led by Jerome Powell, is expected to announce a 25 basis point rate cut in its December meeting, with a focus on restrained easing in 2025. This decision is likely to impact gold, stocks, and the U.S. Dollar.
December 13, 2024 | 12:00 pm
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The expected rate cut by the Fed could positively impact gold prices, benefiting AAAU, a gold ETF. Lower interest rates often lead to higher gold prices as the opportunity cost of holding gold decreases.
The Federal Reserve's rate cut is likely to decrease the opportunity cost of holding non-yielding assets like gold, potentially increasing demand for gold. AAAU, being a gold ETF, would benefit from rising gold prices.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80