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Spot gold fell about 2.1% to $2,589.91 per ounce on December 18, its lowest since November 18, after the Federal Reserve cut rates by 25 basis points but signaled slower cuts ahead. The dollar and bond yields rose on the decision.
Higher-for-longer rates lift the opportunity cost of holding non-yielding gold and strengthen the dollar, which tends to weigh on dollar-priced commodities. For feed buyers the effect is indirect, mainly through a firmer dollar that can make US grain and meal exports less competitive.
reuters.comBrijesh PatelDec 18, 2024After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
