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Gold Rises as Fed Hints At Rate Cuts in 2019

Author:
Eray Bekir
Market News

Gold prices climbed on Wednesday after the U.S. Federal Reserve signaled interest rate cuts were possible later this year, as it responded to increased economic uncertainty and tepid inflation.

Spot gold rose 0.3% to $1,349.40 per ounce. U.S. gold futures settled 0.1% lower at $1,348.8 per ounce.

Seven of 17 policymakers said they expected it would be appropriate to cut rates by half of a percentage point by the end of 2019, and an eighth saw a rate cut of a quarter point as appropriate.

While new economic projections showed policymakers’ views of growth and unemployment largely unchanged, policymakers saw headline inflation at just 1.5 percent for the year, down from the 1.8 percent projected in March.

They also expect to miss their 2 percent inflation target next year as well.

The long-drawn trade tussle between China and the United States has rattle global markets since it began and raised concerns of an economic recession.

The presidents of the world’s two largest economies agreed to revive their troubled talks at a G20 meeting later this month.

 

 

International Financial Markets Department

Euro-Finance Ltd.

forex@eurofinance.bg

www.eurofinance.bg 

*This material should not be considered as a recommendation for buying/selling securities.