Gold price gains ground near the all-time high amid geopolitical risks, Fed rate cut bets
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Gold price extends its rally in Wednesday’s early Asian session. The deteriorating situation in the Middle East and the Fed’s dovish stance underpin the Gold price. Traders await the speeches from the Fed’s Waller and Bostic on Wednesday. The Gold price (XAU/USD) gains traction above $2,500 per troy ounce on Wednesday, bolstered by the escalating geopolitical tensions in the Middle East. Additionally, US Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole symposium last week, signalling “time has come” to begin lowering interest rates, supports the precious metal as it reduces the opportunity cost of holding non-interest-paying assets. Investors will take more cues from the Fed’s Christopher Waller and Raphael Bostic speeches on Wednesday for some hints about the US interest rate path. The attention will shift to the preliminary US Gross Domestic Product (GDP) Annualized for the second quarter (Q2) and Personal Consumption Expenditures (PCE) – Price Index data, which will be published on Thursday and Friday, respectively. The better-than-estimated outcomes could lift the US Dollar (USD) and cap the upside for the USD-denominated Gold price. Daily Digest Market Movers: Gold price remains strong near the record-high Thousands of troops from special units mobilized for a large-scale operation in the northern West Bank, which is anticipated to take several weeks. The report said the army has conducted the largest military operation in the West Bank since 2002, and the operation will continue for several days. “The prospect of falling interest rates is also attracting investors. According to Bloomberg, Gold ETF holdings rose by 15 tonnes last week to the highest level in six months. Speculative interest is particularly strong. The net long position of speculative investors rose to around 193,000 contracts in the week to August 20th, at the same time as Gold hit an all-time high,…
Filed under: News - @ August 28, 2024 1:23 am