Gold Surges Over 40% This Year as All Eyes Turn to Fed Rate Decision
All eyes are on the US Federal Reserve as it prepares to announce its interest rate decision today. The gold market is buzzing, with the precious metal surging over 40% this year and nearing $3,700 per ounce. Meanwhile, the German stock market, particularly the DAX, has taken a dip ahead of the Fed's announcement.
The DAX closed 1.8% lower at 23,329 points, reflecting investor caution ahead of the US stock market today decision. While there have been no recent changes in recommendations for major German stocks like Deutsche BΓΆrse, Deutsche Bank, Commerzbank, Allianz, and Munich Re, Rheinmetall has received reaffirmed 'buy' recommendations from Deutsche Bank and Metzler.
Gold, however, is shining brightly. It has gained more than 40% in dollar terms this year, driven by lower interest rates that reduce holding costs and increased market uncertainty. Central bank purchases have also contributed to gold's rally. The gold market mood is excellent, and investor positioning is not yet extreme, suggesting there's still room for the bullion to run.
The gold price has risen to nearly $3,700 per ounce, boosted by lower interest rates, central bank purchases, and market uncertainty. After the US stock market today decision, gold price consolidation is expected. The euro has also strengthened against the dollar, reaching $1.1809. All eyes now turn to Fed Chairman Jerome Powell's press conference for further insights into the central bank's policy direction.
