Gold hits fresh high as US central bankers share rate outlook
Several US central bankers took part in conferences and interviews yesterday and all expressed caution on when the Federal Reserve should start cutting interest rates.
In a speech to the Stanford Graduate School of Business, Jerome Powell noted that "recent readings on both job gains and inflation have come in higher than expected," and said a rate cut could only happen with "greater confidence that inflation is moving sustainably down" towards the bank's target of 2%. Atlanta Fed President, Raphael Bostic, meanwhile, was on CNBC on Wednesday. For him, rates should likely not be reduced until the fourth quarter of this year. He also said he'd only go for one 25 basis-point cut in 2024, well below the three or more cuts most of his colleagues anticipate. The comments from central bankers helped gold hit a fresh high yesterday – going above $2,300 an ounce. Persistent US Dollar softness alongside the extended retreat in the US Treasury bond yields has been supporting the price of the precious metal.
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