Daily Gold Market Report

Fed Holds Rates Steady:
Gold Rockets To New All Time High

(USAGOLD – 3/21/2024) Gold prices are sharply higher in early trading Thursday, with gold setting a record high of $2,222.91/oz overnight. Silver prices hit a 3.5-month high overnight at $25.77/oz. A dovish tone by the U.S. Federal Reserve has boosted the precious metals markets late this week. Gold is trading at $2200.25, up $13.86. Silver is trading at $25.23, down 35 cents. During the Federal Open Market Committee (FOMC) meeting, the Federal Reserve maintained interest rates at 5.25% to 5.50% and communicated a cautious stance on inflation, suggesting it was “Not terrible” and possibly seasonal. Despite the dot plot indicating three rate cuts for 2024, adjustments for 2025 and beyond hinted at a more hawkish outlook, suggesting a readiness to reduce the number of rate cuts if necessary. However, Fed Chair Powell’s press conference painted a less hawkish picture, downplaying the recent inflation spike as seasonal and indicating a slowdown in the pace of quantitative tightening (QT). This dovish tone during the press conference led to a bullish reaction in the markets, with assets rallying as Powell suggested the Fed would slow the offloading of Treasuries and other bonds, aligning with earlier plans. Powell also says the Federal Reserve is not working on a CBDC, and has no plans to propose one. “It’s wrong to say we’re working on a CBDC.” See Powell’s full answer on CBDCs below: