Gram Gold Price Update
Falling ounce price of gold
An ounce of gold is currently trading at $2,325, 0.3% down from the previous close.
Analysts said investors were focused on comments from Federal Reserve Chairman Jerome Powell and European Central Bank President Christine Lagarde.
Some central banks around the world took interest rate cut measures in the first half of this year after an extended break, but how frequently these measures are repeated in the second half will affect asset prices.
While the path the Fed will take remains in question, making it difficult for investors to make decisions, it is presumed that Chairman Powell’s guidance today could provide a hint as to the Fed’s future policies.
Inflation is expected to decline
Analysts said data released in the US yesterday pointed to a slowdown in economic activity, and that employment data, especially due on Friday, is expected to provide further information on the direction of the US economy.
Analysts said slowing domestic economic activity would be important in helping bring inflation down to expected levels, and that possible signs of a cooling in the labor market would expand the Fed’s policy space.
95% expect rate cut in November
Money markets are pricing in a 71% chance that the Fed will cut rates in September and a 95% chance in November. The potential cut has led to an 80% chance that the central bank will cut rates a second time when it meets in December.
Analysts said today’s domestic data trends are muted, with euro zone inflation and unemployment data and the US JOLTS job openings tracking closely to the $2,300 and $2,280 per ounce levels, with the $2,350 and $2,380 levels at resistance, he said.
