Gold relatively steady after Friday jump - London Business News | Londonlovesbusiness.com
Briefly

A dovish shift from the Federal Reserve lowered US Treasury yields and supported gold after a strong gain. Powell signalled rising labour market risks despite elevated inflation and suggested potential adjustments to the Fed's restrictive stance. Futures markets now price in nearly 25bps moves in September and December, which could keep gold supported. Upcoming US GDP and PCE data will influence the Fed's path; softer inflation and weaker growth could boost gold. Gold-backed ETF flows have been mixed with Asian outflows and other regions more bullish. Ongoing Russia-Ukraine conflict and escalating violence in Gaza add geopolitical support for gold.
Gold held relatively steady on Monday after posting a significant increase on Friday, when a dovish shift from Federal Reserve Chair Jerome Powell at Jackson Hole lifted the precious metal. Powell signalled that risks to the labour market are increasing, even as inflation remains elevated, and suggested that the Fed may need to adjust its restrictive stance, weighing down on US treasury yields and benefiting the precious metal.
Futures markets are now nearly pricing in a 25bps move in September and another in December, which could leave gold well supported. However, the upcoming US GDP growth and PCE data will be key in determining the Fed's policy path. Softer inflation and weaker growth data could help drive gold prices to the upside. On the market side, gold-backed ETF flows have been showing mixed patterns, reflecting investor caution recently.
Read at London Business News | Londonlovesbusiness.com
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