On a recent Thursday, the price of gold managed to stabilize. It stayed above $2,040 per ounce after previously dropping for four consecutive days. Right now, many investors are taking time to carefully consider any upcoming decisions by the US Federal Reserve. They want to understand how these decisions might impact the overall economy.
In the recent past, the price of gold began to fall. This decrease came about because the US dollar grew stronger and the yields on US Treasury bonds went up. These changes made investors rethink their earlier predictions. They now believe that the US central bank might not lower interest rates as much as they had expected within this year.
Officials from the Federal Reserve shared insights in their latest meeting minutes. They indicated plans for lower interest rates in the year 2024. However, they also admitted that there is a lot of uncertainty regarding the direction of future economic policies.
As of now, a significant portion of investors are anticipating a decrease in interest rates by the Federal Reserve. Around 70% of them expect this decrease to happen in March. This percentage is lower compared to the previous week when 90% anticipated a rate cut at that time.
In other parts of the world, the European Central Bank and the Bank of England have made announcements about their own interest rates. They have both indicated that they intend to keep their rates high for a longer period. They do not have immediate plans to lower these rates anytime soon.