Gold continued to hold steady at approximately $2,660 per ounce on Thursday, achieving record levels as markets evaluated the potential for further rate cuts from the Federal Reserve in light of the ongoing easing cycle. Following an aggressive 50 basis points cut earlier this month, several Fed officials have urged a cautious approach to policy adjustments. Nevertheless, the market is increasingly optimistic about a rate cut in November, with fed fund futures indicating a 62% likelihood of another 50 basis points reduction.
Investors are now anticipating a series of crucial US macroeconomic data releases, including the PCE rort, final Q2 GDP figures, weekly initial jobless claims, and durable goods orders for further insights into economic trends. Attention is also focused on upcoming speeches from additional FOMC members, particularly Fed Chair Jerome Powell, who is scheduled to address the public later today.
Amid increasing violence and the escalating risk of a broader conflict in the Middle East, the allure of gold as a safe haven remains strong.
This year, gold prices have surged by $609.06, or 29.53%, since the beginning of 2024, as tracked by contracts for difference (CFD) in the commodity's benchmark market. Analysts predict that gold could reach $2,532.66 per ounce by the end of this quarter, with expectations of further growth, potentially rising to $2,623.27 in the next 12 months.