Gold continues its uptrend but not yet stable
Gold prices continued to rise this morning, increasing by $16.7 compared to the closing price of yesterday's trading session, reaching $1,936.5 per ounce.
Consumer confidence has significantly declined, leading the market to anticipate that the Federal Reserve will not raise interest rates for the US dollar this year. This is the main reason behind the sharp decline in the US dollar and supporting gold price increases.
Although gold continues to maintain a strong recovery, there are still lower risks expected in the near future. The cooling labor market is driving growth in the gold market but it is too early for investors to perceive decisive actions in this market.
Consumer confidence has significantly declined, leading the market to anticipate that the Federal Reserve will not raise interest rates for the US dollar this year. This is the main reason behind the sharp decline in the US dollar and supporting gold price increases.
Although gold continues to maintain a strong recovery, there are still lower risks expected in the near future. The cooling labor market is driving growth in the gold market but it is too early for investors to perceive decisive actions in this market.
Comment:
The Fed has yet to signal a reversal in monetary policy. Therefore, the USD is still considered high and has little chance of a breakout for gold.
Comment:
According to the CME FedWatch tool, traders now see an 86% chance of the Fed leaving interest rates unchanged at its September meeting, up from 78% before the data.
Comment:
According to the US Bureau of Economic Analysis' second quarter gross domestic product report, the economy grew by 2.1%, lower than expectations.
