Wall Street Live

Gold's Rally Risks Fade on Fed's Rate Cut Hesitation

By Athena Xu

4/4, 08:51 EDT
  • Gold's recent rally hinges on the Federal Reserve's commitment to interest rate cuts this year. If the central bank takes a cautious approach to easing, the precious metal's gains could face a setback.
  • Despite uncertainty in bond markets regarding the Fed's easing strategy, gold prices reflect a more optimistic outlook on rate cuts, reaching a new record high.
  • Gold's recent gains have defied traditional relationships with the dollar and real yields, trading more like a risk asset influenced by headlines rather than a stable store of value. This leaves it vulnerable to a potential pullback if expected themes do not materialize.