The Federal Reserve is expected to begin cutting interest rates, The US dollar fell sharply yesterday Gold Returns Over $2,000

The Federal Reserve is expected to begin cutting interest rates,

The US dollar fell sharply yesterday

Gold Returns Over $2,000

On Wednesday (December 13), as the Federal Reserve turned to “dove school” and announced that the interest rate would remain unchanged, the market's call for interest rate reduction in 2024 expanded, the dollar index and US bonds both fell sharply, and the precious metal's hedging function became prominent, leading to the largest increase in the price of gold denominated in dollars in nearly two months. The reason for monetary policy relaxation is emerging, despite strong headwinds throughout history, the outstanding performance of non yield gold may provide conditions for reaching a historic high in 2024.

After the COP28 agreement was reached on Wednesday (December 13th), the outlook for oil in 2024 and beyond has become even more pessimistic. Speculators have played an important role in this trend by significantly reducing long positions while increasing short positions. Excessive concerns about the growth of oil demand have exacerbated market dynamics, which has had a negative impact on market sentiment.

The Federal Reserve's annual interest rate decision for 2023 has come to an end, and the bank has decided to maintain its benchmark interest rate in the range of 5.25% to 5.50%, which is in line with expectations. In the eight resolutions this year, the Federal Reserve has raised interest rates by 25 basis points four times, while maintaining interest rates unchanged four times. After the announcement of the Federal Reserve's interest rate decision, a timetable was set for multiple interest rate cuts in 2024 and beyond, and the US dollar index fell in response. The yield of the benchmark 10-year US treasury bond bond was the lowest since August, falling 17.29 basis points to 4.0296%, with intraday trading between 4.2083% and 4.0051%. The yield of the two-year US Treasury bond fell to its lowest level since mid June, dropping 27.08 basis points to 4.4579%, with intraday trading in the 4.7348% -4.4244% range. The yield of US five-year treasury bond bonds fell below 4%, the lowest since July 20.