Gold rises as Fed rate-cut prospects dent dollar, bond yields

Gold rises as Fed rate-cut prospects dent dollar, bond yields

Gold prices extended gains to a one-week high on Thursday after the U.S. Federal Reserve flagged an end to its tightening cycle and signalled lower borrowing costs in 2024, sending the dollar and Treasury yields tumbling. “The Fed’s dovish pivot stuck a rocket under gold prices, which used $1,980 support as a springboard to break its $2,000 per ounce glass ceiling,” said Matt Simpson, a senior analyst at City Index. “This certainly places the U.S. dollar in a weak spot heading into the back of the year, a month which tends to generate bearish returns for USD and benefit gold.”