The time is coming near for the results of the very important meeting of the Federal Reserve to come out. On September 18, the Fed will announce its policy review and it is believed that for the first time after about 4 years, a rate cut will be announced and with this the relief in rates will begin. The announcement of the Federal Reserve on Thursday will determine the direction of everything from the stock market to gold. It is estimated that the money released in the market after the rate cut can give a new boost to everything from shares to gold and can also increase the pressure on the dollar. Read what will be the effect of the Fed's decision
What will be the impact on gold- Market experts estimate that the rate cuts by the Federal Reserve can take gold to new heights. Bank of America estimates that with the rate cut, gold can touch the level of $ 3000 per ounce. At the same time, the record rise in gold continues. Recently, spot gold has touched the highest level of $ 2589.59 per ounce in the international market. At the same time, the US Gold Future December contract has reached above $ 2610.
( US Fed Rate Cut Impact: If interest rates in America are reduced by 0.25%, what will happen to India's stock market?)
Market experts believe that investors are now anticipating a half percent cut in rates on Thursday. ANZ said in a note that if the rate cut is seen as per the estimate, then in the short term gold can move towards the level of $ 2700, while by the end of 2025, the prices can reach $ 2900. What will be the effect on the dollar? The effect of the expectations of a half percent rate cut by the Federal Reserve is also being seen on the dollar. On Tuesday, the dollar fell and reached close to the lowest levels of the year. The index reached the level of 100.6. According to experts, the market is currently reacting to the expectation of a half percent fall. A lower rate cut than expected may limit the volatility in the dollar. However, a larger rate cut than expected may increase the fall in the dollar. Generally, a rate cut is considered negative for the dollar because a rate cut by the Federal Reserve leads to the possibility of money invested in the US going out to countries where rates are high. This leads to a possibility of a decrease in the demand for the dollar and a fall in prices. (Disclaimer: The advice or views given on CNBC TV18 Hindi / CNBC Awaaz are the personal views of the experts, brokerage firms, the website or management is not responsible for this. Before investing, please consult your financial advisor or certified expert.)
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