Gold Prices Soar as Fed Signals Rate Cuts and Dollar Weakens

Gold prices surged over 1% to surpass $2,000 as the Federal Reserve signaled potential rate cuts in 2024 due to slowing growth and easing inflation. The central bank's updated economic projections, known as the "dot plot," revealed a more dovish outlook, with the Federal Funds rate expected to be at 4.6% by the end of 2024, down from the previous forecast of 5.1%. This shift in monetary policy and the Fed's alignment with market expectations have created positive momentum for gold. The Fed also lowered its rate expectations for 2025 and maintained long-term interest rates at 2.5%.