Thu Sep 12 18:16:00 UTC 2024: ## Wall Street Holds Steady, Gold Soars Ahead of Expected Fed Rate Cut
**New York, Sept. 7** – Wall Street remained largely unchanged on Thursday as investors eagerly anticipated the Federal Reserve’s interest rate decision next week. The Dow Jones Industrial Average dipped slightly, while the S&P 500 and Nasdaq Composite saw modest gains, driven by strong tech stock performance.
The European Central Bank’s second rate cut in three months, announced earlier in the day, did little to alter market sentiment. The ECB’s decision, while widely expected, provided scant clarity on future policy moves.
All eyes are now on the Fed, which is widely expected to cut rates for the first time since 2020. Recent economic data, including slightly higher-than-expected inflation figures, has tempered expectations of a large 50 basis point cut, leading analysts to anticipate a more modest 25 basis point reduction.
“Here it is all but certain that the FOMC will vote to lower interest rates for the first time in this cycle, but there is still the question of by how much,” said Investec Economics.
Gold prices surged to a record high on Thursday, driven by investor interest in the precious metal as a more attractive investment in anticipation of lower interest rates.
“We are headed towards a lower interest rate environment so gold is becoming a lot more attractive,” said Alex Ebkarian, chief operating officer at Allegiance Gold.
The dollar weakened against other major currencies, while oil prices rose nearly 3% as investors assessed the potential impact of Hurricane Francine on US oil production.
First Piper 