Gold Price News: Gold Hits Fresh All-Time High After US Rate Cut

Gold prices spiked to hit a new all-time high on Thursday, as the markets digested the US Fed’s major interest rate cut on Wednesday.

The precious metal broke above the $2,600 threshold and went as high as $2,612 an ounce on Thursday, compared with around $2,562 an ounce in late trades on Wednesday.

Gold’s previous record high of $2,600 an ounce was on Wednesday, following the US Fed’s decision to cut interest rates by 50 basis points – the first cut since March 2020. However, prices fell lower later on Wednesday to notch up a modest day-on-day decline.

Most of the market had expected the Fed’s move, but there were uncertainties over the size of the cut. Recent gains for gold suggested the market had correctly anticipated the Fed’s move. The market’s natural focus will be on the possibility of further loosening of US monetary policy in the remainder of the year, making economic data key for the future path for interest rates.

In addition, the US dollar rose initially on Thursday against other major currencies, creating a headwind for gold, although the greenback fell back later in the session which may have helped gold’s rebound.

Elsewhere, the Bank of England held interest rates steady at 5% on Thursday, having already cut by 25 basis points in August.

Looking ahead, Friday will see Euro Area consumer confidence figures, followed by a speech by ECB President Christine Lagarde, for the latest readings on the EU economy.