Gold prices jumped during trading on Monday, September 23, after the Federal Reserve cut interest rates for the first time in 4 years, and with the latest developments in geopolitical tensions being monitored.
In terms of trading, December gold futures rose by about 0.3% to $2,654.30 per ounce, a level close to the all-time high of $2,656.1 per ounce.
Gold prices rose after the Federal Reserve began easing monetary policy by cutting interest rates by half a percentage point on Wednesday. The bank forecast another half-point cut by the end of the year, a full point next year and an additional half-point in 2026.
The safe-haven asset has jumped about 26% in 2024, the biggest annual increase since 2010, as investors hedge against uncertainty caused by geopolitical tensions in the Middle East.
Analysts believe that the yellow metal's record gains may be subject to a correction. Analysts at Commerzbank said that the record gains will not last forever, indicating that the Fed may cut interest rates by only about 25 basis points in the next two meetings before the end of 2024.
