Gold Price Eyes $3,000 as Market Bets on Federal Reserve Rate Cuts

Gold prices have been on an upward trajectory, driven by mounting expectations for Federal Reserve rate cuts and increased bets on Donald Trump's re-election.

ColumnJul 18 06:33 ET

Gold market analysis: continuing rise in interest rate expectations, frequent breakthroughs in gold price records.

Wang Gang, of Bank of China Guangdong Branch, announced that on Wednesday, July 17, spot gold hit a record high of $2,483.56 per ounce. As expectations of a Fed interest rate cut continue to heat up, US Treasury yields continue to slowly decline. In addition, the weakening of the US dollar is the main driving force behind the trend of gold. The Fed's release of the Beige Book on Wednesday has strengthened market confidence that the Fed is getting closer to cutting interest rates. The Fed's attitude has clearly shifted towards dovishness, giving investors a reason to redeploy their gold holdings and causing a fervent pursuit of price-sensitive funds.

FX678 FinanceJul 18 01:15 ET

Gold trading reminder: After hitting a historic high and falling back, can the future continue to rise?

On Wednesday, gold prices rose and then fell. From a fundamental perspective, there was no obvious bearish news, and the large pullback in the price of gold was likely due to longs taking profits. Relatively speaking, Federal Reserve officials continued to deliver dovish speeches this week, and the latest U.S. real estate data also performed poorly. The Fed's beige book showed that companies expected future growth to slow down, the labor market continued to be weak, the U.S. dollar index fell to a near four-month low, and U.S. bond yields continued to weaken. All of these factors limited the short-term downside space of gold prices and are expected to provide opportunities for gold prices to further rise.

FX678 FinanceJul 17 20:19 ET

GOLD FUTURES CLOSE HIGHER

The gold futures corntract on Bursa Malaysia Derivatives has extended its rally, tracking the movement of gold prices on the New York Commodities Exchange (COMEX).

BernamaJul 17 07:11 ET

Gold market analysis: Despite alarming data, the expectation of interest rate reduction remains intact, with gold prices soaring strongly, hitting a new high.

Bank of China's Guangdong branch, Wang Gang, said that on Tuesday (July 16), spot gold hit a record high of $2,469.59 per ounce. The US retail sales report that day failed to reverse market expectations of a rate cut at the Fed's September 18 meeting, and gold prices hit a record high. Federal Reserve Chairman Powell said on Monday that the Fed is increasingly confident of inflation returning to its target level, which has boosted market confidence, and the market has priced in a nearly 100% chance of a Fed rate cut in September. The expectation of a rate cut in September continues to ferment, keeping the outlook for gold optimistic.

FX678 FinanceJul 17 00:23 ET

Huili: bullish on gold's performance in the second half of the year, a chance to buy in on a dip to $2300.

Zhao Shande said that from a technical perspective, any pullback to the strong resistance at $2300 can provide a good buying opportunity for investors, reflecting that gold has a certain defensive capability.

Zhitong FinanceJul 16 23:36 ET