Support from central banks and Powell’s comments the yellow metal made notable gains this week, supported by reports that several emerging market central banks are increasing their gold reserves. These gains were also reinforced by cautious statements from Federal Reserve Chairman Jerome Powell, who indicated caution in monetary policy, which increased the attractiveness of gold as a safe haven.
Outlook: Gold may remain well positioned for further gains, especially if expectations of lower interest rates and increased demand from emerging market central banks persist. This shift in monetary policy is considered a positive factor for gold, as it typically causes the local currency to weaken and increases demand for fixed assets such as gold.
Gold futures rose during the Asian session: Gold futures rose in the Asian session on Thursday, according to the New York Mercantile Exchange’s Comex rating. August gold futures were trading at $2,387.50 per ounce at the time of writing, up more than 0.33%.
Previous trading sessions Gold futures recorded a rise in the previous session, reaching $2,388.20 per ounce.
Another metal dollar heat At the same time, the dollar index, which measures the performance of the US currency against a basket of six other major currencies, fell by 0.06% to trade at $104.67. In terms of other metals, the price of silver for September rose by 0.95% to trade at $31.31 per ounce. The September copper price also rose by 0.52% to trade at $4.62 per pound.
August Gold Futures: rose to $2,387.50 per ounce (+0.33%).
Dollar Index: The cheapest price rose by 0.06% to $104.67.
Silver for September: rose 0.95% to $31.31 per ounce.
Copper for September: rose 0.52% to $4.62 per pound.
Gold rises before US inflation data… in this case, it will reach $2,400
Global gold prices rose for the third session in a row: Gold prices are expected to continue to rise based on economic data and expectations regarding US federal moves. Global gold prices rose for the third consecutive session on Thursday, as gold prices are expected to rise in the United States later today to obtain inflation data on the path of interest rates at the Federal Reserve.
The weakness of the dollar and its impact on gold: The US dollar declined, making gold priced in dollars more attractive to other currencies. This increases the dollar’s ability to increase demand for gold because it is a safe haven and a hedge against inflation.
Investor trends: Investors are eagerly awaiting US inflation data, as these data will provide important indicators about the Federal Reserve’s future policy on interest rates. Gold Control Tower and Monetary Policy It costs less to determine gold price trends in the global market.
Current performance of gold: Gold futures: rose to new levels, supported by a weaker dollar and growing speculation about US interest rate cuts. The dollar index: cheaper, which enhances the attractiveness of gold as a safe haven.
Waiting for US inflation data: for signals on the path of Fed interest rates. The positive outlook on gold remains as investors continue to monitor economic and political progress for years.
Continued rise: Gold prices continue to rise for the third session in a row, today, Thursday, as investors await the release of the Consumer Price Index report for June at 15:30 Riyadh time, in addition to the Producer Price Index report on Friday. Investors expect this data to boost optimism about interest rate cuts by the Federal Reserve this year.
The impact of inflation data on gold
Any downside surprise in the CPI report could lead to a weaker dollar and gold prices rising to the $2,400 level, said Edward Meier, an analyst at Marks. Federal Reserve Governor Lisa Cook added on Wednesday that US inflation should continue to decline without a significant increase in the unemployment rate.
Price expectations and appeal as a safe haven: Mayer explained that the low levels of gold we witnessed previously will not return, noting that there is the possibility of achieving another record high this year in the event of a geopolitical shock. Gold is considered a hedge against geopolitical turmoil, and its appeal increases in times of low interest rates, when the yellow metal does not generate a return.
Waiting for US inflation data: June CPI and Producer Price Index.
Expectations of Interest Rate Cuts: Increasing optimism regarding interest rate cuts by the Federal Reserve.
Potential impact on the dollar and gold: A weak dollar may push gold to rise to record levels.
Official Comments: Fed’s Lisa Cook stresses the need for inflation to remain low without increasing unemployment.
Geopolitical Outlook: A geopolitical shock could push gold to another record high.
So, with the continued decline of the dollar and increased speculation about lowering interest rates, analysts expect gold prices to continue to rise, especially in light of the current economic and political conditions. Upcoming inflation data is crucial in determining the future direction of gold and financial markets
Gold at settlement yesterday: Gold futures prices rose during trading yesterday, Wednesday, as the content of Federal Reserve Chairman Jerome Powell’s testimony before the House of Representatives was absorbed.
Upon settlement, gold futures prices for August delivery rose by 0.5%, or $11.8, at $2,379.7 per ounce, with the yellow metal consolidating its gains achieved during the previous session.
