Gold price climbs after interest rates cut by Federal Reserve
Gold prices edged higher on Thursday after the US Federal Reserve delivered a divided interest rate cut, while signalling caution on the outlook for further easing.
Investors are now focused on US jobs and inflation data for November due next week, followed by a detailed third quarter economic growth report.
The metal’s record-breaking rally this year has drawn attention, yet US investors remain only marginal holders. Goldman Sachs (GS) said gold (GC=F) ETFs accounted for just 0.17% of private US financial portfolios in the second quarter, a tiny share of the roughly $112tn Americans hold in stocks and bonds.
The bank’s analysis also shows that fewer than half of large US institutions managing more than $100m have any gold (GC=F) ETF exposure. Among those that do, typical allocations range from 0.1% to 0.5%. For major long term investors, about 0.2% of portfolios are held in gold.
Source: Bloomberg.com