As anticipation builds over the Federal Reserve’s impending decision on interest rates, the prices of gold and silver climbed in the market today. Investors, buoyed by optimism over a potential rate cut, are turning to these precious metals as safe havens.
The price of gold increased by 4% while silver saw a hike of 3.5%. This is seen as a response to speculation that the Federal Reserve may trim down borrowing costs, thereby reducing the interest rate. History has shown that, typically, gold and silver prices tend to go up when the interest rate is low. This trend is attributed to the lower opportunity cost of holding non-yielding bullion.
Further, with the anticipated rate cut, the dollar also weakens, making dollar-priced metals cheaper for investors using other currencies, thereby pushing the demand, and subsequently, the prices up.
The decision is awaited with bated breath as it could reshape markets globally, and have a profound impact on everything from precious metal stocks to real estate and other areas. Keep following us for further updates on this situation. Read More
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