Gold price hovers around $2,690 as Fed cut reinforces safe-haven appeal

Gold prices are stabilizing near $2,690 per ounce 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 monetary easing has led to a decline in U.S. Treasury yields, enhancing the attractiveness 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 policy stance. 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.