Gold prices rallied again, approaching the $3,800 level during the Asian session on Monday (September 29th), driven by US inflation data that met expectations. This condition reinforced speculation that the US Federal Reserve (The Fed) will continue to cut interest rates by the end of the year, which could lower the opportunity cost of holding gold as a non-yielding asset. Furthermore, geopolitical uncertainty has also boosted demand for gold as a safe haven asset.
Market participants are now awaiting speeches by several Fed officials on Monday, including Governor Christopher Waller and several regional Fed presidents. Hawkish comments from them have the potential to strengthen the US dollar, which typically depresses the prices of dollar-denominated commodities like gold. Therefore, sentiment from these speeches will be key to the direction of gold prices going forward.
At the time of writing, the gold price is at $3,797.
Disclaimer:
This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
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