Potential for further Gold Price Gains

Ricardo Evangelista – Senior Analyst, ActivTrades

The gold price rose on Wednesday morning, supported by rising expectations of further interest rate cuts by the US Federal Reserve and increased demand for safe-haven assets.

Yesterday’s downward revision to US labor market data underscored the cooling labor market, which put pressure on the dollar and supported the precious metal due to the inverse correlation between the two assets. Gold also benefits from increased demand for safe-haven assets following the flare-up of tensions in the Middle East after Israel attacked a target in Qatar.

Against this backdrop, traders will closely monitor the release of US PPI inflation figures for August later today and CPI figures tomorrow. Market consensus points to only minor changes from previous values, so any positive surprise could lead markets to price in more aggressive interest rate cuts by the Fed – a dynamic that could weaken the dollar and create further room for gold price gains.

Keywords

Featured Company

Further Links

Never miss important news again.

Receive exclusive updates on exciting commodity companies, market analyses, and investment opportunities directly in your inbox.

By submitting the form, you agree that your contact details will be processed for sending the newsletter.

Disclaimer

I. Information Function and Disclaimer: GOLDINVEST Consulting GmbH offers editors, agencies, and companies the opportunity to publish comments, analyses, and news on www.goldinvest.de. The content serves exclusively for general information and does not replace individual, professional investment advice. It does not constitute financial analyses or sales offers, nor is it a solicitation to buy or sell securities. Decisions made based on the published information are entirely at your own risk. No contractual relationship arises between GOLDINVEST Consulting GmbH and the readers or users, as our information relates exclusively to the company and not to personal investment decisions.

II. Risk Disclosure: The acquisition of securities involves high risks, which can lead to the total loss of the capital invested. Despite careful research, GOLDINVEST Consulting GmbH and its authors assume no liability for financial losses or for the content’s guarantee regarding timeliness, accuracy, appropriateness, and completeness of the published information. Please also note our further terms of use.

III. Conflicts of Interest: In accordance with §34b WpHG and §48f para. 5 BörseG (Austria), we point out that GOLDINVEST Consulting GmbH, as well as its partners, clients, or employees, hold shares in the aforementioned companies. Furthermore, a consulting or other service agreement exists between these companies and GOLDINVEST Consulting GmbH, and it is possible that GOLDINVEST Consulting GmbH may buy or sell shares of these companies at any time. These circumstances can lead to conflicts of interest, as the aforementioned companies compensate GOLDINVEST Consulting GmbH for its reporting.