The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Investing

Gold and Silver Prices Gain as Fed Holds Rates Steady

by August 1, 2024
August 1, 2024
Gold and Silver Prices Gain as Fed Holds Rates Steady

The US Federal Reserve announced on Wednesday (July 31) that it will continue to hold its benchmark interest rate steady at 5.25 to 5.5 percent following the two day Federal Open Market Committee meeting.

The central bank has now maintained its policy for one year since its last rate increase in July 2023.

The meeting comes just days after the US Bureau of Labor statistics released the latest personal consumption expenditures (PCE) price index data, which indicates that inflation continued to cool in June.

The data shows a year-on-year increase of 2.5 percent in June, down from the 2.6 percent reported in May.

PCE is a favored measure of the Fed as it works to bring inflation back down to its target rate of 2 percent.

In its decision, the committee said it is seeking greater confidence that inflation is moving sustainably toward its goal, and will continue to assess “incoming data as it is available, the evolving outlook and the balance of risks.”

It reiterated that the economic outlook remains uncertain, and said it will continue to monitor economic indicators and labor market conditions. Analysts widely expected the central bank to leave rates unchanged at this meeting, with economists predicting that the first cut will come during its next meeting in September.

“We expect rate cuts in the second half of this year to support business-to-business demand, with manufacturing and industrial activity benefiting in 2025 and 2026,’ said ITR Economics economist Lauren Saidel-Baker.

Markets rallied ahead of the Fed’s release, with the Nasdaq-100 (INDEXNASDAQ:NDX) and S&P 500 (INDEXSP:.INX) leading with 3.25 percent and 1.7 percent gains after a strong earnings report from AMD (NASDAQ:AMD) pushed chipmakers and the tech sector higher. The Dow Jones Industrial Average (INDEXDJX:.DJI) was up just under 1 percent.

Prices for gold and silver were also up in morning trading, fueled by increasing tensions in the Middle East following Israeli assassinations of Hezbollah and Hamas leadership in Lebanon and Iran, respectively; both precious metals spiked further once the Fed meeting was complete.

As of 3:40 p.m. EDT on Wednesday, gold had climbed 1.28 percent from the market’s open to move above US$2,450 per ounce, and silver had climbed 1.26 percent in the same period to hit US$29 per ounce.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Investing in Graphene Companies (Updated 2024)
next post
China doping controversy casts a shadow over Olympic swimming

You may also like

CWENCH Hydration Strengthens its Retail Footprint in Western...

Gold and Nickel Exploration Update

Auric Mining

Top 8 Lithium Stocks

North Arrow Minerals

Bold Ventures

WESTERN COPPER AND GOLD ANNOUNCES VOTING RESULTS FROM...

ISLA-101 Phase 2a/b PROTECT Clinical Trial Progress Update

Sarama Resources Advances Acquisition of Gold Project in...

Tumour Response in Sixth Patient Triggers Additional Recruitment...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Buffett Hands Over Reins, What’s Next for Berkshire’s Capital Strategy?

    • Triumph Gold Updates Shareholders on Operations, Engages Market Maker, and Grants Options

    • Investing in Uranium ETFs: 9 Options for Uranium Exposure

    • Trump says 80% tariff on China ‘seems right’ ahead of weekend talks with Beijing

    • Crypto Market Recap: Bitcoin Breaks US$100,000 as ETF Inflows Rise, Coinbase Makes US$2.9 Billion Power Play

    Categories

    • Business (1,633)
    • Investing (4,797)
    • Politics (7,544)
    • World (6,131)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top