Gold's Uptrend Intact? ATH Remains Unbroken
Gold extended its rally on Monday as mounting expectations for a Federal Reserve rate cut in September fueled demand for the safe-haven asset. Powell gave the green light on interest rate cuts during his speech at Jackson Hole last Friday.
San Francisco Fed President Mary Daly echoed Powell, saying “It's hard to imagine anything could derail a September rate cut.”
Traders are closely eyeing next week’s Nonfarm Payrolls report, which could play a crucial role in determining the magnitude of the rate cut. An abysmal number could raise the likelihood of a 50bps cut. Lower rates reduce the opportunity cost of holding gold, and thus increases its appeal.
Adding to bullion’s appeal, escalating tensions in the Middle East, particularly the intensifying conflict between Israel and Hezbollah, provided an additional boost to prices.
Despite the bullish momentum, gold has yet to reclaim its all-time high of $2,531. Technical indicators show some loss of upward momentum, though they remain well above neutral levels, suggesting the uptrend remains intact.
San Francisco Fed President Mary Daly echoed Powell, saying “It's hard to imagine anything could derail a September rate cut.”
Traders are closely eyeing next week’s Nonfarm Payrolls report, which could play a crucial role in determining the magnitude of the rate cut. An abysmal number could raise the likelihood of a 50bps cut. Lower rates reduce the opportunity cost of holding gold, and thus increases its appeal.
Adding to bullion’s appeal, escalating tensions in the Middle East, particularly the intensifying conflict between Israel and Hezbollah, provided an additional boost to prices.
Despite the bullish momentum, gold has yet to reclaim its all-time high of $2,531. Technical indicators show some loss of upward momentum, though they remain well above neutral levels, suggesting the uptrend remains intact.
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