Fed Officials’ Remarks Stir Market Sentiment
The price of gold is inching closer to its record high, bolstered by declining bond yields and comments from Federal Reserve officials. Cleveland Fed President Loretta Mester indicated a preference for maintaining current interest rates in the upcoming December meeting. In contrast, Atlanta Fed President Raphael Bostic expressed growing confidence in inflation’s downward trajectory, while Richmond Fed President Thomas Barkin emphasized the need to keep rate hike options open.
Gold’s Rally and Economic Indicators
Since early October, gold has experienced an 11% rally, initially driven by safe-haven buying due to the Israel-Hamas conflict. Now, with bond yields dropping significantly, gold prices are nearing the peak reached during the pandemic. Investors are closely monitoring the US economic growth data and consumer spending trends, which show a faster-than-expected expansion in the third quarter but a less robust rise in consumer spending.
Current Market Status
As of the latest update, spot gold has risen by 0.3% to $2,047.37 in New York’s trading session. This price is just shy of $30 below the all-time high. Market participants are awaiting the Fed’s preferred inflation measure for further insights into potential interest rate changes.