Key points:
Gold prices (Symbol: XAUUSD) edged higher, trading at $2,461.27 per ounce. This is a price level not far from the record high of $2,483.60 set in the previous session. As anticipation of a US interest rate cut in September rises, this turns into a significant factor boosting demand for gold.
The image above shows the how gold is under pressure, as observed on the VT Markets app.
Apart from the increased probability of Fed rate cut in September, the overall market sentiment has been further bolstered by comments from Fed officials.
Fed Governor Christopher Waller and New York Fed President John Williams have both indicated a shorter horizon toward looser monetary policy. Additionally, Richmond Fed President Thomas Barkin expressed optimism about the cooling in inflation.
Fed officials signal cuts ‘getting closer’ as inflation cools https://t.co/OOqzW1EPW8
— Financial Times (@FT) July 17, 2024
Lower interest rates generally increase the appeal of non-yielding bullion, pushing gold prices higher.
The upcoming US elections and potential global trade wars, especially between the US and China, could further boost precious metals as investors seek to hedge their equity and currency exposures.
That being said, gold could rise to a price level ranging between $2,700 to $3,000 over the next 6 to 12 months, regardless of the outcome of the US election. This outlook is driven by both the expectation of lower interest rates and potential geopolitical tensions.
The rising expectations for a Federal Reserve rate cut, combined with economic and geopolitical uncertainties, will likely keep gold on an upward trajectory. Traders should be ready to take advantage of these trends while keeping risk management intact.
Education
Company
FAQ
Promotion
Risk Warning: Trading CFDs carries a high level of risk and may not be suitable for all investors. Leverage in CFD trading can magnify gains and losses, potentially exceeding your original capital. It’s crucial to fully understand and acknowledge the associated risks before trading CFDs. Consider your financial situation, investment goals, and risk tolerance before making trading decisions. Past performance is not indicative of future results. Refer to our legal documents for a comprehensive understanding of CFD trading risks.
The information on this website is general and doesn’t account for your individual goals, financial situation, or needs. VT Markets cannot be held liable for the relevance, accuracy, timeliness, or completeness of any website information.
Our services and information on this website are not provided to residents of certain countries, including the United States, Singapore, Russia, and jurisdictions listed on the FATF and global sanctions lists. They are not intended for distribution or use in any location where such distribution or use would contravene local law or regulation.
VT Markets is a brand name with multiple entities authorised and registered in various jurisdictions.
· VT Global Pty Ltd is authorised and regulated by the Australian Securities & lnvestments Commission (ASIC) under licence number 516246.
· VT Global is not an issuer or market maker of derivatives and is only allowed to provide services to wholesale clients.
· VT Markets (Pty) Ltd is an authorised Financial Service Provider (FSP) registered and regulated by the Financial Sector Conduct Authority (FSCA) of South Africa under license number 50865.
· VT Markets Limited is an investment dealer authorised and regulated by the Mauritius Financial Services Commission (FSC) under license number GB23202269.
· VTMarkets Ltd, registered in the Republic of Cyprus with registration number HE436466 and registered address at Archbishop Makarios III, 160, Floor 1, 3026, Limassol, Cyprus.
Copyright © 2024 VT Markets.