The price of gold today (GCZ23) soared to an all-time high of $2,130.2 an ounce on the COMEX exchange before falling back. Gold prices have climbed more than +16% over the past month from a 9-month low on growing speculation that the Federal Reserve and European Central Bank are done tightening monetary policy and will begin cutting interest rates early next year.
Gains in gold prices were turbocharged last Friday when Fed Chair Powell said that monetary policy is “well into restrictive territory,” spurring a gold-positive plunge in the dollar and T-note yields. Gold rallied even after Fed Chair Powell last Friday also said, "it would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate when policy might ease.” Also, ECB Governing Council member Villeroy de Galhau said last Friday, "Barring any shock, ECB rate hikes are over," and we can look at rate cuts when the time comes in 2024.
