COINOTAG reported on September 16 that prior to the Federal Reserve’s interest rate decision, the highly anticipated US retail sales data will be disclosed. UBS emphasized their keen interest in both retail sales and industrial production metrics, noting that disappointing figures could prompt the Fed to consider reducing the federal funds rate by 50 basis points rather than the anticipated 25 basis points. UBS pointed out that with the deceleration of US inflation, there is a potential for more significant interest rate cuts. The agency stated their core outlook involves the Federal Reserve potentially lowering interest rates by 100 basis points over the remainder of this year, and an additional 100 basis points in 2025. UBS further commented that an accelerated rate cut trajectory is likely to weaken the US dollar and boost gold prices.
Source: https://en.coinotag.com/breakingnews/gold-set-to-surge-as-ubs-predicts-aggressive-federal-rate-cuts-amid-weak-us-retail-data/