Gold prices retreated slightly after hitting a record high in response to the Federal Reserve's half-point interest rate cut. Spot gold fell 0.4% to $2,560.29 per ounce after briefly reaching $2,592.39 earlier in the day, while U.S. gold futures closed up 0.2%. 

The Fed's decision to lower rates, which is expected to continue into next year, has pushed gold prices higher due to its reduced opportunity cost compared to interest-bearing assets. As bond yields rise and the dollar weakens, the demand for gold strengthens. Investors are awaiting further insights from Fed Chair Jerome Powell on the future direction of monetary policy. 

Meanwhile, with inflation still elevated, many are turning to gold as a hedge against eroding purchasing power. Silver prices rose 0.6%, while platinum remained steady, and palladium dropped 3.2%.

Finsum: Gold could be an important hedge if inflation comes back from the grave with interest rates quickly falling. 

With 2024 coming to an end, financial advisors contemplating a switch to a new broker-dealer may wonder if there’s still time to make the move. While possible, the process can take several months depending on the complexity of the transition and level of support available. 

Advisors looking to act quickly may benefit from financial incentives and smoother tax records by completing the transition before the new year. However, rushing such an important decision isn’t advisable, so careful planning and blocking time for key discussions is essential.

Transition consultants can help expedite the process by securing offers and guiding advisors through the logistics. Ultimately, those who begin the process now may still be able to switch broker-dealers by the end of 2024, but many may find it more practical to plan for early 2025.

Finsum: While it’s certainly late in the year these services could help optimize time in order for a smooth transition.

An unprecedented number of American households are uncertain about the economic future, with many expecting inflation to take a larger portion of their income. Financial stress from the high cost of living and rising borrowing costs has added to the uncertainty, especially in an election year. 

Though consumer sentiment slightly improved in September due to expectations of lower inflation and potential interest rate cuts, the overall view of current conditions remains near record lows. Prices are still significantly higher than before the pandemic, despite inflation slowing.

 A growing number of Americans expect no real income growth over the next five years. Additionally, confidence in achieving a comfortable retirement is at its lowest point since 2013.

Finsum: Inflation hasn’t been a strong concern for retirement in nearly 40 years, but suddenly it is having a critical impact, and investors should consider options accordingly.