After months of cautious trading, gold has moved to a near two-week high, responding not to geopolitical tension or inflation, but to growing conviction that the Fed will begin easing policy by mid-2025.
The market is now actively pricing in a rate cut as early as June, with December seen as increasingly likely. This changing outlook on rates is materially altering the cost-of-carry dynamic for non-yielding assets like gold. As the opportunity cost of holding bullion falls, the metal is starting to reassert itself as a relevant option in long-term portfolio strategy.
While the move in price has so far been moderate, it reflects a broader recalibration. Yields on US Treasuries have pulled back from recent highs, and confidence is growing that the Fed’s tightening cycle may be nearing its end.
Cora Gold Ltd (LON:CORA), together with its subsidiaries, explores for and develops mineral projects in West Africa. The company primarily explores for gold deposits. Its flagship project is the Sanankoro Gold project located in the Yanfolila Gold Belt, Southern Mali.
