Money Week: Why is Gold Looking Attractive on Wall Street?
Article by Alex Rankine in Money Week
“There’s a new gold rush,” says Paul La Monica in Barron’s. Not in California, but “on Wall Street”.
The yellow metal has climbed a fifth this year and recently gold hit a new record high in dollar terms. It has eased back from August's record of $2,531.70 an ounce (oz) to trade at around $2,475/oz.
How are US rate cuts helping gold?
Gold’s latest spurt came as the Federal Reserve chair Jerome Powell signaled interest rate cuts ahead.
US rate cuts help gold in two ways. Firstly, gold is normally priced in dollars. Lower interest rates tend to weaken the greenback, meaning that more dollars are required to buy an ounce of gold than before.
Secondly, interest-rate cuts reduce the .....