Gold Analysis 18-July-2024

Gold prices increased to $2,460 per ounce on Thursday, approaching record levels. This rise is due to increasing optimism that the Federal Reserve might cut rates as early as September.

Gold Analysis 18-July-2024

More Fed officials are now more confident that the price increase rate aligns with their goals. On Wednesday, Fed Governor Christopher Waller hinted that a rate cut is likely soon. This follows comments by Fed Chair Jerome Powell on Monday, who noted that June’s lower-than-expected inflation increased confidence in reaching the price growth target.

Powell also mentioned that the central bank is prepared to cut rates before inflation hits 2%. According to CME’s FedWatch Tool, there’s now a 98% chance the Fed will cut rates in September, with traders expecting three 25bps rate cuts this year instead of two.