Gold Tops $2400 Amid Rate-Cut Hope: Is the Bull Run Over?

The anticipation of a Federal Reserve rate cut in September has invigorated the gold market, propelling prices above the $2,400 threshold for the first time since May 22nd. This surge followed the release of US Consumer Price Index (CPI) data on Wednesday, which fell short of Wall Street expectations and prompted the market to price in over a 90% chance of a rate cut in September.

Analysts NotebookJul 12 11:23 ET

Gold Market Analysis: Soft US inflation data boosts bets on rate cuts, and gold prices are working hard to return above 2400.

Wang Gang of Bank of China Guangdong Branch stated that US CPI data in June indicated positive progress in the Fed's inflation management and confirmed a trend of falling inflation in the second quarter. Therefore, after weak inflation data was released, the interest rate futures market fully priced in a 25 basis points rate cut by the Fed in September, betting on a total reduction of 61 basis points this year, up 11 basis points from before the data release. The sharp increase in the probability of the Fed's rate cut expectation makes the key macro groups that have been observing so far increasingly likely to regain their interest and investment confidence in gold.

FX678 FinanceJul 12 01:36 ET

Gold Market Analysis: Powell's Testimony Preheating Rate Cuts, Gold Prices Continue to Slightly Rise

Wang Gang of the Bank of China Guangdong Branch said that on Wednesday, Powell's half-year testimony to the Senate was consistent with Tuesday's speech, emphasizing the balance between inflation and employment risks. Although Powell's two-day congressional policy speech was cautious, investors still smelled the dovish tone from it, believing that his speech gradually indicated that the Fed is gradually approaching the first interest rate cut since 2020, which calmed the market's views that the Fed cannot cut interest rates this year yet. Now, the focus is on the CPI and PPI reports. Gold seems to be facing more favorable factors.

FX678 FinanceJul 11 03:07 ET

Gold Price Resumes Uptrend, US CPI in Focus

Gold surges amid growing expectations of Fed rate cuts in September.

FXStreetJul 10 14:40 ET

Gold market analysis: Powell's testimony is cautious, and gold prices remain stable after the pullback.

Wang Gang, the Bank of China's Guangdong provincial branch, said that Federal Reserve Chairman Powell tried to convey a message during his congressional speech that risks are balanced. Even so, according to CME Group's FedWatch tool, traders currently expect a likelihood of about 75% for a rate cut in September. Currently, the market focus is on the US consumer price index (CPI) to be released on Thursday. If inflation in June continues to decline as it did in May, it is expected to greatly increase the market's expectation of the Fed unveiling a rate cut in September. At that time, gold is expected to be stimulated to rise.

FX678 FinanceJul 10 01:28 ET

Gold Price Inches Higher as Powell Signals Patience

Gold prices rise above $2,360 after Powell’s Senate testimony indicates a cautious approach to rate cuts.

FXStreetJul 9 15:31 ET