Pullback In Gold Prices Sets The Stage For Next Big Move – What’s Next?

How Central Banks’ Decisions Shape 2024

Looking ahead, this week is all about the macroeconomics, with 60% of the world’s major central banks set to announce interest rate decisions in a whirlwind 60-hour window.

This 60-hour sequence of global monetary policy setting will ultimately determine the tone for the rest of the year and 2024 as central banks grapple with the mantra of higher for longer against a backdrop of unease at just how rapidly global inflation is falling faster than expected.

Taking front and centre stage will undoubtedly be the Federal Reserve – especially as expectations are running high that the Fed could be among one of the first major central banks to deliver multiple rate cuts next year.

Earlier this month, traders quickly latched onto comments by Federal Reserve Governor Christopher Waller – one of the central banks most influential voices – signalled that interest rates were unlikely to rise further and could be cut if inflation continued to slow.

Waller’s comments sent Gold prices rocketing to an all-time record high of $2,152 an ounce, surpassing the precious metals previous all-time high of $2,075 an ounce that had been recorded only two days earlier.

Anticipation Builds: The Federal Reserve’s Rate Cut Speculation

The big question now is will the Federal Reserve cut interest rates next year – and, if so, by how much?

Traders have been obsessed with discovering the answer to this burning question, ever since a top Fed official hinted that the U.S central may begin to cut interest rates as early as March.

When the Federal Reserve’s latest policy meeting ends on Wednesday, the Fed will provide some highly anticipated clues about the extent of rate cuts next year. In the meantime, the Federal Open Market Committee is expected to leave its benchmark rate unchanged at a 22-year high for the third consecutive meeting in a row.

The Fed’s 19-member policy committee will also issue its quarterly economic projections, which include estimates of unemployment, inflation and growth over the next three years. The forecasts will almost certainly point to some rate cuts in 2024.

As traders know – regardless of the outcome, every rate decision has enormous potential to move the markets significantly, presenting massive opportunities to capitalize on!

Gold Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: