Gold prices take a hit as the Fed cuts rates by 25bps but signals only two 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 two rate cuts in 2025.
December 18, 2024 | 7:30 pm
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NEGATIVE IMPACT
AAAU, a gold-backed ETF, may experience a short-term decline in value due to the drop in gold prices following the Fed's rate cut and future rate cut signals.
The decline in gold prices is likely to negatively impact AAAU, a gold-backed ETF, as its value is directly tied to the price of gold. The Fed's rate cut and limited future cuts suggest a less aggressive monetary easing, which can lead to a stronger dollar and lower gold prices.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80