Gold prices continue to approach $3,650 per ounce and are poised for a fourth weekly gain. This was fueled by expectations that the Federal Reserve will cut US interest rates, as inflows into gold-backed ETFs increased. Silver also rallied, reaching $42 per ounce—its highest level since 2011. Market sentiment was supported by US consumer inflation data for August that met expectations, giving the Fed room to lower borrowing costs after previous labor market data showed weakness.

Market participants now expect at least one 25 basis point interest rate cut at next week's Fed meeting, with the potential for two additional cuts by the end of the year. This has put downward pressure on the US dollar and the 10-year Treasury yield, further supporting precious metal prices. Lower borrowing costs, falling yields, and a weakening greenback have historically been a positive combination for gold and silver.

The price of gold at the time of writing was $3,649/oz.

DISCLAIMER

Note: This article is for analytical purposes only and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.

Source: Newsmaker.id