Gold prices at high after US Fed hints at rate cut

Gold prices at high after US Fed hints at rate cut


Gold prices at high after US Fed hints at rate cut Health care companies claim they are not threatened by Amazon and x27;s potential foray into the space. A recent lawsuit suggests otherwise. It wasn and x27;t supposed to be this way: The 2017 tax cut and aggressive moves toward deregulation were supposed to pull the U.S. economy out of its glacial move higher. The yield on the benchmark 10 year Treasury note fell below 2 percent for the first time since November 2016 on Wednesday. Slack pursued an unusual direct listing, meaning it did not have banks underwrite the offering. President Trump says Iran may not have intentionally downed an unmanned U.S. surveillance drone. Slack and x27;s public market debut on Thursday will generate billions for venture firm Accel and healthy returns for Andreessen Horowitz and Social Capital. The road to the Fed and x27;s policy pivot to lower interest rates began in early May, with a tweet from President Trump on trade. See which stocks are posting big moves after the bell on June 20. Chairman Jerry Nadler, D N.Y., said in a statement that lawyers for the Trump administration blocked Hicks from answering questions 155 times during the Wednesday hearing. Jim Cramer says you and x27;ll want to keep some powder dry so you can buy into weakness and get some real bargains. CNBC analysis using Kensho found that Disney, Verizon and Home Depot were some of the best performing Dow stocks in declining rate environments. Analysts raised their price targets on Oracle and were bullish on revenue growth even as other infrastructure companies face challenges. Gold hit a five year high on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, pressuring U.S. Treasury yields and the . prices surged to levels not seen in more than 5 years. The commodity is currently trading 2.2 percent higher at around dollar 1,389.8 per ounce. also saw strong gains, rising 3.3 percent to dollar 1,394.2 per ounce. Following the Fed meeting on Wednesday, where the U.S. central bank left interest rates unchanged but , the 10 year Treasury yield fell below 2 percent for the first time since November 2016, breaching an important psychological level. One economist told CNBC that the surge in gold prices were likely driven by the declines in yields of shorter duration Treasurys ranging between three months and two years. The yield on the 3 month Treasury note trickled lower to 2.146 percent . The 2 year note dropped to 1.716 percent . With expectations for the U.S. funds rate to drop by 2020, gold has become quite attractive as a result, said Rob Carnell, chief economist and head of research for Asia Pacific at ING. The shorter end of the yield curve tends to move in line with interest rate movements, meaning that a lower expected Fed funds rate will likely drive short term yields down. As the yields on the shorter duration notes go down, gold becomes more attractive as an investment option due to its relatively higher yield. The gold market is suggesting to us that there and x27;s sufficient liquidity to move the medal higher, said Jeff DeGraaf, founder and chairman of Renaissance Macro Research. Whether that and x27;s a precursor to inflation or just a reflection of low carry cost, it and x27;s hard to pin down what that cause is. Fed Chair said at a post meeting news conference that . The Fed and x27;s rate projections showed that eight Fed members see a cut this year, which traders took as a further sign the central bank was close to cutting rates. Its median forecast, however, still reflected no cuts this year, but additional . Nine members on the Federal Open Market Committee wanted a cut to a funds rate around 2.1 percent in 2020. Demand for safe haven assets is still elevated because of ongoing geopolitical uncertainties, said founder of The Sevens Report Tom Essaye. The global fundamental backdrop remains unclear, which is keeping a flight to safety trade alive. But with real yields on bonds declining, gold and x27;s appeal as a safe haven is growing, all while a weaker dollar is supportive of commodities broadly, said Essaye. Han Tan, market analyst at forex brokerage FXTM, attributed the gold price spike to a weakening dollar on the back of the dovish Fed statement as well. The Dollar and x27;s weakness that followed the Fed and x27;s dovish pivot has sparked the surge in Gold prices, given the gloomier outlook over the global economy. With major central banks such as the Fed and the ECB citing greater uncertainties, such dovish tones from policymakers are roaring on Bullion bulls, he wrote in a note. The dropped broadly against its rivals on Thursday and is on track for its biggest two day drop in a year. — CNBC and x27;s Jeff Cox, Yun Li and Fred Imbert contributed to this report. Got a confidential news tip? We want to hear from you. Sign up for free newsletters and get more CNBC delivered to your inbox Get this delivered to your inbox, and more info about our products and services.  © 2019 CNBC LLC. All Rights Reserved. Data is a real time snapshot asterisk Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Data also provided by

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