Gold Holds Close to Five-Week High
Gold hovered around $3,410 per ounce on Friday, near its highest level in over a month, and is on track for a second consecutive weekly gain, sustained by a softer US dollar and safe-haven demand. The metal continued to draw support as investors sought refuge amid uncertainty over US monetary policy.
Concerns that political pressure on the Federal Reserve could accelerate interest rate cuts have bolstered prices, with markets largely pricing in a 25 bps reduction in September. Fed Governor Christopher Waller also signaled support for starting rate cuts next month, saying he “fully expects” further reductions to bring policy closer to neutral, echoing the stance of his colleagues.
Meanwhile, investors are focusing on the US personal consumption report later today, which is forecast to accelerate, following revised data showing the US economy grew slightly faster in Q2, raising inflation concerns. For the month, gold is poised for its best performance since April.
Source: Trading Economics
