Rate cut bets ramped up again following the slew of latest data, which signal a slowdown in the world's largest economy. Traders now see a 78% chance of a September rate by the U.S. central bank, according to CME's FedWatch tool.
Gold prices jumped in 2024 buoyed by the potential for the US monetary policy easing, a likely decline in the US dollar, increased geopolitical tensions and continuous purchasing by central banks.
Inflation in the United States cooled down in May for the second consecutive month. We have highlighted ETFs from five sectors that will benefit from easing inflation.
Gold recently broke out to new all-time highs but the uptrend was broken after the strong May labor report, as the expectations of a pre-mature Fed cut evaporated. Higher interest rates over the near term, as the market prices a "higher-for-longer" policy, are likely to cause the price of Gold to continue to fall over the near term. Gold's price movements seem to be following Bitcoin, indicating a speculative environment and lack of fundamental reasons for Gold's breakout.
The price of gold took a hit on Friday, falling more than 3%, after U.S. payrolls data came in stronger than expected. News of the labor market strength pushed back traders' expectations of when the Federal Reserve could move to cut rates, sending bond yields higher and making them more attractive to investors.
We're almost halfway through the year. So, where do things stand with stocks, precious metals, and the options markets?
Rate cut bets ramped up again. We have highlighted ETFs from sectors that are set to explode on lower rates.
Gold prices have been on a tear, with the precious metal naturally proving a hot topic during last week's Alternatives Symposium.
As the U.S. dollar experiences a gradual decline in purchasing power, investors are increasingly turning to precious metals stocks as a safe haven. Precious metals, like gold and silver, have historically served as a hedge against inflation and currency devaluation.
Gold and silver exchange-traded funds gained on Monday as the underlying metals surged to new highs.