Gold climbs above $2,700 as Fed rate cut hammers US yields

Gold prices have surged past the $2,700 mark, reaching a record high, following the Federal Reserve’s recent interest rate cut. The Fed reduced its benchmark rate by 25 basis points to 4.75%, aiming to support economic growth amid global uncertainties. This move has led to a decline in U.S. Treasury yields, enhancing the appeal of non-yielding assets like gold. Investors are increasingly turning to gold as a hedge against potential inflation and currency fluctuations resulting from the Fed’s accommodative monetary policy. Analysts suggest that if the Fed continues its rate-cutting trajectory, gold prices may experience further upward momentum. Market participants are advised to monitor central bank policies and economic indicators closely, as these factors will significantly influence gold’s performance in the coming months.