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On this day — September 16, 2024

Monday — typically a high-volume trading day as markets digest weekend news. Asian gold imports often see Monday surges in major demand countries.

Day 260 of 366 · Q3 2024 · 71.0% through the year

September 2024 gold market: Fed's jumbo cut supercharges gold

Bullish

An outsized Fed cut sent gold sprinting past $2,600.

The Federal Reserve began its easing cycle with an outsized 0.50-point cut on September 18, and gold surged past $2,600. Lower rates reduce the opportunity cost of holding non-yielding gold, and the market wasted no time pricing in more cuts to come.

The September cut mattered less for its size than for what it confirmed: the rate-cut thesis that had powered gold all year was now real, not just anticipated. Falling policy rates lower the 'opportunity cost' of holding gold — the yield an investor gives up by owning metal instead of bonds. With the Fed now easing into a still-resilient economy, gold's two biggest tailwinds, falling real yields and a softer dollar, were reinforcing each other.

What drove gold in September 2024

  • Fed begins easing with a 50bp cut (Sep 18)
  • falling real yields
  • weaker dollar
  • momentum and ETF inflows returning
Themes#Fed policy#rate cuts#opportunity cost

Key events in September 2024

  1. Sep 18Fed cuts rates 50bp; gold pushes past $2,600

What happened next

Gold extended to records above $2,700 in October before the US election.

For gold buyers

September's jumbo cut validated the rate-cut thesis that had driven gold all year — the easing cycle had finally begun.

Key terms this month

Opportunity cost:
The return given up by choosing one asset over another. Lower interest rates reduce the opportunity cost of holding non-yielding gold.

Sep 16 across the years — 20202023

-1.7% over 3 years
20202023
YearSep 16 closevs prior
Sep 16, 2023$1,927.70+15.80%View
Sep 16, 2022$1,664.70-4.77%View
Sep 16, 2021$1,748.00-10.90%View
Sep 16, 2020$1,961.80View
Each row is the verified XAU/USD spot close for Sep 16 of that year. Click any row to open the full daily archive (with country tables for Sep 16, 2020+).