- The gold market is stuck in neutral and could remain there through the rest of the summer as U.S. economic data continues to support the Federal Reserve's monetary policy tightening bias; however, analysts say that near-term weakness could be seen as a buying opportunity as the market waits for a new spark to trigger a broader rally.
"Gold has a lot of competition as a safe-haven asset as the idea of a soft landing in the U.S. economy grows as consensus," said Edward Moya, senior market analyst at OANDA."The long-term interest in gold is there, but this is going to be a tough environment. Gold will struggle until we see a market risk event."
Analysts note that markets remain laser-focused on economic data as the Federal Reserve keeps its options open and remains data-dependent. The problem for traders and investors is that the data is still not providing any clear guidance. Analysts have said that U.S. economic data has to turn decisively negative before interest rate expectations start to shift.
Aside from the economic data, the bond market is something that analysts are keeping an eye on, as higher volatility could be the spark that ignites a broader rally. While the U.S. bond market is not expected to see an immediate collapse, analysts said they are looking for cracks. Concerns over U.S. debt levels started to grow after Fitch Ratings downgraded U.S. long-term debt. Those fears were sharpened this past week following a disappointing 30-year bond auction.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gold Market Rallies After Worse-Than-Expected Employment DataThe gold market experienced a rally after the release of worse-than-expected employment data. Spot gold rose from $1,921.88 an ounce to a session high of $1929.31. The latest labor market data showed that weekly jobless claims rose by 21,000 to 248,000, surpassing economists' expectations. Continuing jobless claims, however, fell by 8,000. As a result, spot gold last traded at $1,925.86 an ounce, up 0.61% on the day.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Gold Market Reacts Mildly to Inflation DataThe gold market shows little reaction to the slightly lower-than-expected CPI inflation and slightly higher-than-expected PPI inflation reports. This reinforces the belief that the Federal Reserve will not raise interest rates at its September meeting. Traders now see a lower chance of a rate hike in September and November, with a rate cut not expected until 2024. Gold prices finished July above $2000 for the first time in history.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Gold Prices Decline as Market Remains Divided on Inflation and Rate HikesGold prices declined 1% during the week as market participants remain divided on whether the Federal Reserve's terminal rate has been reached. Retail investors are bullish on gold's prospects, while analysts remain cautious. Adrian Day, President of Adrian Day Asset Management, expects gold to rally next week as sentiment shifts.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »
Gold Prices Positioned to Benefit from Weakening Dollar, Says Market StrategistGold prices are struggling to attract bullish investor attention but remain well positioned to take advantage of the U.S. dollar's waning reserve currency status, according to market strategist Willem Middelkoop. He believes that the recent downgrade of U.S. debt by Fitch Ratings could ignite a bigger fire in global financial markets. Middelkoop also points to the volatility in the bond market and the growing number of nations no longer supporting the dollar system as signs that the system is breaking down. He suggests that the Federal Reserve may step in soon, which could be interesting for gold.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »