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Gold edges up on improved Fed rate cut expectations and Mideast tensions

Spot gold prices rose. Meanwhile, U.S. gold futures dipped. These movements reflect market anticipation of an interest rate cut by the U.S. Federal Reserve, with probability of a 50 basis points cut in September. Bank of America Global Research has advanced its expectation for the first rate cut to September from December. Other major brokerages now predict the Fed will cut rates in all three remaining meetings this year. Lower interest rates reduce the opportunity cost of holding non-yielding bullion, thus supporting gold prices. Market participants are also focusing on the initial jobless claims data and a speech by Richmond Fed President Tom Barkin. Read more to find out how will gold trend here.

how will gold trend

Disclaimer:

Given the current market sentiment and economic indicators, gold prices might continue to see modest gains if the Federal Reserve proceeds with rate cuts as expected. Risk management is advised to complement these releases closely for further indications of market trends.

Publication date:

2024-08-12 09:04:04 (GMT)

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