According to ANZ commodity strategists, the price of gold has fallen below $2,500 per troy ounce due to a stronger US Dollar dampening investor demand.
What’s Next for Gold Markets?
The recent drop in gold prices is linked to concerns about the Federal Reserve’s potential rate cuts. Swap traders are currently pricing in nearly 100 basis points of cuts by the end of the year, a move that some experts believe may be excessive.
Additionally, the market is seeing a high level of net long positions in gold, which could lead to further selling if the Fed’s actions do not align with these expectations. All eyes are now on Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole.
Expert Analysis:
It’s important to keep a close eye on gold prices in the coming days as they are influenced by various factors, including the strength of the US Dollar and market expectations regarding Federal Reserve actions. Investors should stay informed and be prepared for potential market fluctuations based on these developments.