Gold fell around 0.6% to around $3,325/oz during Thursday's European session, after selling pressure emerged every time the price approached $3,350. The tone of the July FOMC minutes, which emphasized the need for clarity on the impact of tariffs on inflation, kept the market restrained and kept the US dollar strong - a combination that was less than favorable for gold.
However, there are differing views within the Fed. Michelle Bowman and Christopher Waller believe a 25 bps cut is preferable because they prioritize cooling the labor market. Officially, the Fed held interest rates at 4.25%-4.50% in July, while CME FedWatch still shows an 81.6% chance of a 25 bps cut to 4.00%-4.25% in September.
The next major catalyst is Jerome Powell's speech at the Jackson Hole Symposium on Friday. A hawkish tone (suppress inflation, be patient with cuts) could potentially curb gold's rally and strengthen the dollar. Conversely, dovish signals could trigger short-covering and drive a rapid recovery in gold. Technically, $3,350 remains a nearby resistance zone, while $3,300-$3,280 is a closely watched support area.
Geopolitically, the market is also monitoring news of Russia-Ukraine peace efforts, including reports of a possible trilateral meeting in Budapest. The prospect of a ceasefire tends to reduce the commodity's risk premium, but in the very near term, gold's direction will likely remain determined by Powell and the US dollar's response. (alg)
Source: Newsmaker.id
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" ...
Gold prices hit another record high, while silver held near its all-time high. This rise was driven by two major factors: the escalating Greenland crisis and turmoil in the Japanese government debt ma...
Gold prices remained near all-time highs on Tuesday, hovering around $4,670 per ounce. Demand for safe haven assets remained strong as US-European trade tensions escalated, prompting investors to refr...
Gold and silver hit new records after US President Donald Trump threatened to impose tariffs on eight European countries that oppose his Greenland plan. This situation immediately pushed investors int...
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ti...
Gold prices briefly caused a stir after hitting a new record, but then slowed. The main trigger: US President Donald Trump withheld the threat of tariffs on Europe and claimed there was a "framework" for a future agreement on Greenland. This calmer...
Oil prices were little changed in Asian trading on Thursday after US President Donald Trump backed down from a threat to impose tariffs on European countries over Greenland. This decision helped ease geopolitical tensions and improve market...
The Nikkei 225 Index climbed 1.73% to close at 53,689, while the broader Topix Index rose 0.74% to 3,616 on Thursday, snapping a five-day losing streak as Japanese shares were lifted by a strong rally in chip and artificial intelligence related...