Gold prices power higher on Fed gambit to lower U.S. interest rates
(Kitco News) - Gold prices are trading sharply higher in late-morning action Tuesday, following the surprise announcement from the Federal Reserve that it is lowering its benchmark interest rate—the Fed funds rate—by 0.5%. The rate now stands at 1.0 to 1.25%. The aggressive move by the Fed initially popped the U.S. stock indexes sharply higher, but they have since come off those highs and are now trading lower. The move by the U.S. central bank is very risky, as it might incite more fear in a marketplace that is already on edge. At first blush, the move by the Fed is not being deemed as reassuring for traders and investors, and that is what has popped gold prices sharply higher. Federal Reserve Chairman Jerome Powell will hold a press conference at 11:00 a.m. EST.