yolowire.com - The price of Gold has pulled back from record highs as markets bet on smaller interest rate cuts from the U.S. Federal Reserve moving forward.
A strong September labour report in the U.S. has futures traders ratcheting down their expectations for interest rate cuts later this year and into 2025.
Traders are now betting 90% that the U.S. central bank will lower interest rates by 25-basis points at its next policy meeting in November.
That expectation has gold trading at $2,665.90 U.S. an ounce, down about 1% since the U.S. jobs report was released on Oct. 4.
Gold had traded at all-time highs in late September after the U.S. Federal Reserve lowered interest rates by 50-basis points and signalled further cuts are ahead.
Other precious metals are also on the decline, with platinum falling 0.5% to $997.05 U.S. an ounce and silver slipping 0.1% to $32.36 U.S. per ounce.
Gold tends to benefit from lower interest rates as they reduce the opportunity cost of owning the yellow metal that’s used to make jewellery.
Gold has had one of its best years ever in 2024 and is up more than 20% in the last 12 months.