July 15, 2024 02:20:41 PM
Furthermore, the markets have been pricing in the possibility that the Fed will lower borrowing costs again in December.
SEATTLE (Scrap Monster): Gold price (XAU/USD) extends the downside during the early European session on Monday. The commodity, meanwhile, remains well within the striking distance of its highest level since May 22 touched last week and seems poised to appreciate further amid dovish Federal Reserve (Fed) expectations. In fact, market participants seem convinced that the Federal Reserve (Fed) will begin cutting interest rates in September, which, in turn, is seen acting as a tailwind for the non-yielding yellow metal.
Furthermore, the markets have been pricing in the possibility that the Fed will lower borrowing costs again in December. This fails to assist the US Dollar (USD) to capitalize on its modest recovery gains from over a three-month low and turns out to be another factor acting as a tailwind for the USD denominated-Gold price. Apart from this, the US political jitters in the wake of an alleged assassination attempt on former US President Donald Trump and China's economic woes validate the near-term positive outlook for the XAU/USD.
Courtesy: www.fxstreet.com