Gold could retain upward trend in medium term - analyst
Gold Lacks Momentum Ahead of Fed Policy Decision
Gold struggled for traction on Wednesday as traders remained cautious ahead of the U.S. Federal Reserve's policy decision later in the day.
- Spot gold held steady at $1,963.99 per ounce by 0546 GMT, with U.S. gold futures up 0.1% to $1,965.20.
- Market strategist Yeap Jun Rong predicts an extended rate pause, but Fed officials may leave room for a potential hike in September or November.
- Approximately 35% of traders see a chance for another 25 basis point increase in rates in November, according to CME's Fedwatch tool.
- Rising interest rates impact gold's appeal as it increases the opportunity cost of holding non-yielding bullion.
- However, there is potential for gold to retain its upward trend in the medium term, given the final phase of the Fed's tightening cycle.
- The dollar and U.S. Treasury yields near two-week highs continue to weigh on gold, which lacks yield.
- Traders are also awaiting policy guidance from the European Central Bank and U.S. GDP data for the second quarter on Thursday.
- The U.S. economy is expected to have risen 1.8% during April-June.
- Friday's June personal consumption expenditures (PCE) print, the Fed's preferred inflation gauge, will also be closely watched.
GOLD
BUY LIMIT 1964 - 1966💯💯
✅ TP1: 1970
✅ TP2: 1975
✅ TP3: 1980
🛑 SL: 1959
Gold struggled for traction on Wednesday as traders remained cautious ahead of the U.S. Federal Reserve's policy decision later in the day.
- Spot gold held steady at $1,963.99 per ounce by 0546 GMT, with U.S. gold futures up 0.1% to $1,965.20.
- Market strategist Yeap Jun Rong predicts an extended rate pause, but Fed officials may leave room for a potential hike in September or November.
- Approximately 35% of traders see a chance for another 25 basis point increase in rates in November, according to CME's Fedwatch tool.
- Rising interest rates impact gold's appeal as it increases the opportunity cost of holding non-yielding bullion.
- However, there is potential for gold to retain its upward trend in the medium term, given the final phase of the Fed's tightening cycle.
- The dollar and U.S. Treasury yields near two-week highs continue to weigh on gold, which lacks yield.
- Traders are also awaiting policy guidance from the European Central Bank and U.S. GDP data for the second quarter on Thursday.
- The U.S. economy is expected to have risen 1.8% during April-June.
- Friday's June personal consumption expenditures (PCE) print, the Fed's preferred inflation gauge, will also be closely watched.
GOLD
BUY LIMIT 1964 - 1966💯💯 ✅ TP1: 1970
✅ TP2: 1975
✅ TP3: 1980
🛑 SL: 1959
