How did the interest rate cut in America affect the price of gold globally and locally?


After bond yields fell and stocks fell due to the Federal Reserve’s sudden decision to cut interest rates, the price of gold domestically and locally witnessed a significant rise, with the yellow metal registering its highest levels in the month of March, an ounce of gold recording an increase close to $ 50 achieved 1645 dollars, and locally the gold record rose about 19 pounds to 716 pounds, which affected the gold sales in Egypt.

The yield on ten-year US Treasury bonds has fallen below the 1% level for the first time in its history, and intense selling has resumed in the US stock markets on Tuesday evening, which came after the Federal Reserve announced an emergency interest rate cut of 50 basis points, on Despite the Fed’s assertion that the decision was made in an attempt to stem market declines.

According to Bloomberg news, the yield on 10-year treasury bonds fell to 0.9043%, before the rise came back to near 1%, and the 30-year treasury yield, linked to inflation, entered the negative area for the first time in its history, as Shares gave up most of their gains, as the three major indices closed with a decrease of about 3%.

All these developments came after the Federal Reserve’s decision, which is considered the most influential intervention since the financial crisis in 2008, as the Fed announced an emergency interest rate cut of 50 basis points in anticipation of what he called “the increased risks” of the spread of the Covid-19 virus. In an effort to calm investors, the Fed stressed that the US economic fundamentals were “still strong” and pledged to use its tools and work to support the economy..

This is only the third time in the past 25 years that the Federal Reserve has undertaken an emergency interest rate cut, and the rate cut is the largest since October 2008, according to Enterprise.


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