

EBC Markets Briefing | Bullion within a whisker of a fresh all-time high

Gold pulled back from its fresh record high above $2,500 on Monday but remained resilient, bolstered by hopes the Fed is edging closer to cutting interest rates at its next meeting.

Bullion climbed more than 2% the last session as a reading on the US housing market disappointed. The bullish run in recent years has been driven by rising geopolitical risks and central banks’ robust demand. Speculators boosted their net-bullish bets on Comex gold futures to a near four-year high in the week ending 13 Aug, CFTC data show. That came as the battered stocks resumed their rally. Meanwhile, gold ETFS have risen in recent months following a couple of years of outflows, data compiled by Bloomberg show. Ongoing wars and upcoming US presidential election will still keep investors on edge. Countries like China, Turkey and India have been looking to diversify their reserves away from the US dollar, especially since witnessing the West freeze Russia's dollar assets in the wake of its Ukraine invasion. Commerzbank Research raised its forecast on gold to $2,600 by the middle of next year, predicting three Fed rate cuts by the end of this year and three more in the first half of 2025.

Gold kept its strong momentum after crushing another psychological threshold. Trend trading is recommended unless the price heads towards 50 SMA. EBC Fintech Development Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Group Brand Influence or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Learn more

Contact:

mkt@ebc.com

Disclaimer:

Investment involves risk. The content of this report is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product.

Publication date:

2024-08-19 07:52:10 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.