Gold price forecast (XAU/USD) are currently trading around $2,450, showing some recovery after a two-day drop. This increase is partly due to a weaker US Dollar (USD). Investors are waiting for important US economic reports, including Retail Sales, Initial Jobless Claims, the Philly Fed Manufacturing Index, and Industrial Production, which will be released later today.
Recent Inflation Data and Its Impact on Gold Price Trends
On Wednesday, the US Labor Department reported inflation data for July. The Consumer Price Index (CPI) rose by 0.2% from the previous month, making the annual inflation rate 2.9%. The core CPI, which excludes food and energy, also increased by 0.2% month-over-month, leading to a 3.2% annual rate, matching what was expected.
Federal Reserve Rate Cut Expectations and Their Effect on Gold Price Trends
Phillip Streible from Blue Line Futures mentioned that the market now expects only a 25 basis point rate cut, which might affect gold price forecast.
Federal Reserve Policy Insights
Federal Reserve officials are open to the idea of easing policy but are cautious about committing to specific plans. Atlanta Fed President Raphael Bostic said he needs more evidence before agreeing to lower interest rates.
Geopolitical Tensions and Safe-Haven Demand
Geopolitical tensions and economic uncertainty could drive more investors to gold as a safe haven. For example, Iran has ignored Western requests to avoid retaliation against Israel after the assassination of Hamas leader Ismail Haniyeh, as reported by the BBC.
Market Outlook
Looking ahead, gold price forecast may continue to be influenced by a mix of economic indicators and geopolitical events. Traders should monitor upcoming economic reports for any signs that could impact gold prices. Additionally, geopolitical developments could lead to increased market volatility, affecting gold’s role as a safe-haven asset.
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