Economic Outlook for Gold price (XAU/USD) maintains its upward trajectory, nearing $2,470 per troy ounce on Thursday, staying close to record levels amidst optimism surrounding potential rate cuts by the Federal Reserve (Fed). Lower interest rates make Gold, a non-yielding asset, more appealing to investors.
Federal Reserve officials have expressed confidence in inflation trends aligning with policy goals. Fed Governor Christopher Waller indicated a nearing interest rate cut, supported by Richmond Fed President Thomas Barkin’s view on broadening inflation easing.
Market Sentiment and Economic Indicators
Traders await key economic data including US weekly Initial Jobless Claims and the Philly Fed Manufacturing Index. Markets reflect a 93.5% probability of a 25-basis point rate cut in September, per CME Group’s FedWatch Tool.
The US Dollar Index (DXY) has seen a rebound on improved US Treasury yields, currently at 103.80. This may cap potential gains for Gold.
Market Influencers and Commentary
Former President Donald Trump’s recent comments on tax reductions and tariff hikes may impact inflation and USD strength, potentially boosting demand for Gold.
Federal Reserve Insights
Fed members continue to monitor inflation data closely. Dr. Adriana Kugler emphasized the need for additional data to support any rate adjustments.
US Economic Indicators
US Retail Sales for June met expectations, stabilizing at $704.3 billion, following a revised gain in May.
Technical Analysis: XAU/USD Outlook
Economic Outlook for Gold price hovers around $2,470, consolidating within an ascending channel on the daily chart. The 14-day RSI suggests a bullish trend but warns of potential overbought conditions, implying a likely correction.
Conclusion
Gold’s resilience near all-time highs reflects market anticipation of Fed rate cuts. Stay informed with the latest updates on Daily Gold Signal for comprehensive insights into daily market movements.
