The price of gold hit an all-time high
TheStreet’s J.D. Durkin brings you the biggest news of the day, including a rough start to the month for stocks and why the price of gold is on the rise.
Transcript
00:00 I'm JD Durkin reporting from the New York Stock Exchange and here is a look at what
00:03 we are watching on the street today.
00:06 Stocks are getting off on the wrong foot to kick off the month after a strong November.
00:10 Investors are feeling a bit of doubt that the U.S. Federal Reserve could cut rates in
00:14 the near future and markets are pricing in a 15% chance that the central bank lowers
00:19 interest rates in January.
00:22 Investors are turning their attention to the labor market as they look ahead to Friday's
00:25 November jobs report.
00:27 In other news, the price of gold is on the rise.
00:30 On Monday, gold rose to a record $2,135 an ounce, surpassing the previous high which
00:36 was set in August of 2020 by about $60.
00:40 Several factors contributed to the new all-time high, including expected rate cuts by the
00:45 Federal Reserve, a weak dollar, and geopolitical tensions.
00:49 When interest rates fall or are expected to fall, the demand for Treasury bills, bonds,
00:54 and notes decreases because the interest payments become lower.
00:58 And with the Fed expected to cut rates as soon as March, gold is becoming more attractive.
01:03 Gold also becomes more attractive during economic and geopolitical turmoil.
01:08 Gold prices have increased for two consecutive months while the war between Israel and Hamas
01:12 has continued.
01:14 And it seems as if the trend will continue.
01:16 A new survey by the World Gold Council found that almost a quarter of all central banks
01:21 plan to increase their gold reserves over the next 12 months.
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