Gold prices take a hit as the Fed cuts rates by 25bps but signals only one cut in 2025
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Gold prices have declined following the Federal Reserve's decision to cut interest rates by 25 basis points, with an indication of only one more cut in 2025.
December 18, 2024 | 7:30 pm
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NEGATIVE IMPACT
The Fed's rate cut has led to a decrease in gold prices, which could negatively impact the value of AAAU, a gold-backed ETF.
AAAU is directly affected by changes in gold prices. The Fed's rate cut typically strengthens the dollar, making gold less attractive, thus potentially decreasing the value of gold-backed ETFs like AAAU.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80