As the US Federal Reserve signals a possible rate cut at the next meeting, gold remains strong above $2,500 for the third consecutive day. The weakening US Dollar Index (DXY) at 101.10 is also supporting gold prices, currently trading at $2,511.
The Fed’s July meeting Minutes revealed a potential interest rate cut in September if economic data aligns with expectations. This news has led to a decrease in the Greenback by over 0.20%.
Investors are now looking ahead to upcoming US economic data releases and Fed Chair Powell’s speech at the Jackson Hole Symposium on Friday.
Market Movers: Gold Price Holds Firm Post-FOMC Minutes
- Gold prices are on the rise as US Treasury bond yields drop. The 10-year Treasury note is down 1.5 basis points at 3.792%.
- Traders are anticipating 102 basis points of easing following the FOMC minutes release.
- US Initial Jobless Claims are expected to increase to 230K for the week ending August 17.
- S&P Global PMIs show a slight decline in the Services PMI from 55 to 54, while the Manufacturing PMI is expected to remain at 49.6.
- Existing Home Sales are forecasted to grow from 3.89 million to 3.93 million.
Technical Analysis: Gold Price Targets $2,550 After Breaking $2,530
Based on gold’s daily chart, a breach of the $2,531 level could lead to further upside momentum towards $2,550 and $2,600. However, a retracement below $2,500 could see support at $2,483 and $2,450.
For a more detailed breakdown and understanding of the potential movements in the gold market, keep an eye on upcoming economic indicators and Fed announcements.
Economic Indicator: FOMC Minutes are crucial for understanding the Federal Reserve’s monetary policy decisions and future interest rate moves. Stay informed to make better investment decisions.