Gold prices rise slightly as Fed Chairman comments are assessed

Gold prices rose near their highest level in history during trading on Tuesday, October 1, as US Federal Reserve Chairman Jerome Powell played down expectations of a Fed rate cut.

Powell said in statements yesterday, Monday, that the Fed will likely seek to cut interest rates by a quarter percentage point in the future and that he is in “no rush” after new data boosted confidence in continued economic growth and consumer spending.

According to the CME Group’s FedWatch service, investors in the market expect a 25 basis point rate cut in November by 62%, up from 47% on Friday.

Rate cuts add to the appeal of non-yielding gold. The yellow metal achieved its best quarterly gains since 2020 yesterday, Monday, after the Federal Reserve began its monetary easing cycle by cutting interest rates by half a percentage point at its September meeting.