Gold plunges straight down, losing the $4,650 mark; Fed rate cut faces uncertainty

robot
Abstract generation in progress

Reporter | Jin Shan

Editor | Jiang Peixia

On the afternoon of May 11, spot gold plummeted and broke below $4,650 per ounce, down 1.37% for the day, briefly rebounding to $4,655.43 per ounce at the time of writing. New York futures gold fell below $4,660 per ounce, down 1.50% for the day. Silver experienced a short-term decline, currently trading at $80 per ounce.

Hong Kong gold stocks plunged, with Lingbao Jewelry dropping over 11%, Tongguan Gold falling over 10%, Chifeng Gold dropping over 9%, Hanwang Gold and Wanguo Gold falling over 6%, and Datang Gold dropping over 5%.

In terms of oil prices, the upward trend continues. As of the time of writing, WTI crude oil surpassed $100, rising over 5%, and Brent crude oil increased over 4%, trading at $103.

According to Caixin, there is the latest news on the Federal Reserve’s rate cuts. Goldman Sachs has pushed back its forecast for when the Fed will cut rates, from the previous expectations of September and December this year to December 2026 and March 2027. The bank pointed out that high energy prices are likely to keep inflation elevated. Due to the ongoing Middle East conflict for over 10 weeks, which has driven up energy prices and caused policymakers to remain cautious about inflation risks, many global brokerages have lowered their expectations for a rate cut in the U.S. in 2026. Currently, market opinions are divided; some institutions expect slight easing, while others expect no rate cuts at all.

It is believed that a rate cut by the Federal Reserve in 2026 is not entirely impossible. The impact of oil price shocks on economic growth is lagged, so even if short-term inflation rises, the Fed may prefer to wait and see rather than immediately hike rates. According to the latest forecast, the Fed will delay rate cuts until the second half of 2027, mainly due to high inflation levels and strong employment growth. Previously, the institution had expected the Fed to cut rates once in September and once in October this year.

Yuesheng Investment Research: Extended reading on popular thematic company clues

(Statement: The content of this article is for reference only and does not constitute investment advice. Investors operate at their own risk.)

Produced by | 21 Financial Client, 21st Century Business Herald

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin