The King Is Back! Gold Shines Back Above $2,000 Level

<p>&nbsp;Early this morning, the price of gold experienced a sharp increase after the Federal Reserve (Fed) set interest rates on hold and signaled an end to their tightening cycle.</p><p><br /></p><p>Although there is still room for further tightening measures, the consideration for interest rate cuts is considered a 'dovish' indicator by The Fed and makes the price of gold hover around $2,000 following a significant depreciation of the US dollar.</p><p><br /></p><p>Based on the latest FOMC report, the Fed kept the monetary policy range between 5.25% to 5.50% for the third meeting in a row. Indirectly, this will encourage inflation to moderate slightly but still remain high.</p><p><br /></p><p><br /></p><p>The US central bank stated that they will remain dependent on the data to set monetary policy next year. However, they are still consistent to bring inflation to the 2% target.</p><p><br /></p><p>The Fed has already completed its tightening cycle with the federal funds rate expected to remain at 5.4% for the remainder of the year. They also plan to ease monetary policy by 72 basis points in 2024 from 5.33% to 4.61%.</p><p><br /></p><p>Growth is expected to increase to 2.6% from 2.1% with overall inflation expected to drop below 3% and core to decrease towards 3.2% where both are projected to decrease compared to September.</p><p><br /></p><p>For now, the price of gold is seen to have managed to return to the upper $2,000 level despite being traded erratically due to the follow-up statement delivered by the Fed Chairman, Jerome Powell.</p>