Gold prices suddenly dropped, then increased to a record high
Gold prices surged to a new record high of $2,600 in yesterday's trading session after the US Federal Reserve (Fed) announced a 0.5 percentage point interest rate cut.
However, this rally was short-lived, with gold falling sharply to a new low of $2,553 during the day.
Gold has fallen to a four-day low, according to the latest update. It is expected to close at a low in the next three or four days. This suggests a deeper correction, possibly around $2,532/ounce.
However, a bullish breakout in gold could be triggered once the price breaks above $2,600. Thereafter, gold could continue to rise to $2,650 to $2,661 per ounce, based on some analysis of Fibonacci and other measurement patterns (ABCD).
As of 2:00 p.m. on September 19, the world gold price listed on Kitco was at 2,577.6 USD/ounce, up 17.4 USD/ounce compared to the beginning of the previous trading session.
Fed cuts interest rates aggressively
Early this morning, September 19 (Vietnam time), the Fed announced a cut in the federal funds rate by 50 basis points, while analysts predicted it would only be 25 points.
The Fed also released economic projections, revising the 2024 unemployment rate to 4.4% from 4.0%. The PCE inflation forecast fell to 2.3% from 2.6%, while the core PCE inflation forecast fell to 2.6% from 2.8%.
The Fed expects aggressive rate cuts in the future, forecasting the federal funds rate to fall to 4.4% by the end of 2024 and to 3.1% by 2025.
