Gold Prices Remain Firm as Fed Rate Cut Expectations Build
Gold stabilized around $2,490 per ounce on Friday, after dropping more than 1% in the previous session from its record highs, as markets awaited Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later in the day. There is widespread anticipation that Powell will indicate the Fed’s plan to start easing its restrictive policy in September, though details on the pace and extent of the reduction are expected to be limited. Recently, several Fed officials have shown optimism about a potential rate cut next month, a sentiment reflected in the latest FOMC minutes. Traders are still expecting 100 basis points in rate cuts by the end of the year, which would reduce the opportunity cost of holding non-yielding assets. Moreover, recent data suggests the US labor market might struggle under restrictive rates. Initial jobless claims in the US slightly exceeded forecasts in mid-August, raising concerns after the significant downward revision to nonfarm payrolls for the year ending in March.
Resistance 3 |
Resistance 2 |
Resistance 1 |
Support 1 |
Support 2 |
Support 3 |
2531 |
2520 |
2507 |
2481 |
2472 |
2448 |