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Gold hits over 5-year high as Fed hints at rate cuts

Gold prices jumped to their highest level in more than five ..

Gold prices jumped to their highest level in more than five years on Thursday, after the US Federal Reserve signalled possible interest rate cuts later this year.

FUNDAMENTALS

Spot gold was up 1.3 per cent at $1,377.41 per ounce as of 0117 GMT, after hitting its highest since March 17, 2014 at $1,383.81.

US gold futures surged 3 per cent to $1,397.70 an ounce.

The Fed held interest rates steady, as expected, but said it "will act as appropriate to sustain" the country's economic expansion as it approaches the 10-year mark and dropped a promise to be "patient" in adjusting rates.

The bulk of Fed policymakers slashed their rate outlook for the rest of the year by roughly half a percentage point, and Fed Chairman Jerome Powell said others agree the case for lower rates is building.

The market expects the Fed to cut rates as soon as next month.

The dollar index fell to a near one-week low on Thursday after the Fed signalled a possible rate cut by the end of the year, while 10-year US Treasury yield dropped to its lowest level in nearly two years.

US Trade Representative Robert Lighthizer said he will confer with his Chinese counterpart Vice Premier Liu He before next week's meeting between President DonRead More – Source
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