Gold gains over 1% today, setting a new record at $3,728 per ounce.
On the day of the Federal Reserve’s first interest rate cut this year, gold initially reached new historical highs, breaking above $3,700. However, due to mixed interpretations of the decision, gold underwent a correction during Wednesday and Thursday's sessions. On Friday, as the market’s sentiment became clearer, investors resumed purchasing gold, and today the price of the metal has climbed another 1%, reaching a new historical peak.
The market's confidence that the Fed will enact two more rate cuts this year is currently the primary driver. We can expect US central bankers to provide further clarity on monetary policy as they speak throughout the week. Today, we will hear from John Williams, a key figure at the Fed who, as the head of the New York branch, is a permanent voting member of the FOMC. Additionally, Alberto Musalem, Mark Hammack, Tom Barkin, and Adriana Miran will also speak. Tomorrow is arguably a more significant day, as we will hear from Jerome Powell again, along with Raphael Bostic. Thursday will also be important for speeches, with appearances from John Williams, Michelle Bowman, Michael Barr, Lorie Logan, and Mary Daly. On Friday, we will get the Fed's preferred inflation measure: PCE inflation. The headline reading is expected to accelerate to 2.7%, while core PCE is forecast to remain at 2.9%.
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Expectations for interest rate cuts by next September have been rising sharply but are not currently in line with gold’s high prices. However, a similar situation occurred in May and June, and gold still gained in value. Source: Bloomberg Finance LP
Gold is currently testing the $3,720-$3,730 per ounce range, which is also the external retracement of the downward wave from April and May. Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
