Gold stabilised after a couple of trading sessions in the red although the asset remains near its high.
The metal could remain under some pressure as the dollar and US yields rebound.
Nonetheless, gold’s outlook remains positive overall. Markets expect the Federal Reserve to cut interest rates by 50 basis points in September and to follow up with two 25 basis point cuts.
The cuts could support gold if they materialise.
Gold prices could find support due to the anticipated easing cycles from other central banks as well and a potential general economic slowdown, particularly in China. Additionally, rising tensions and risks of a flare-up in the conflict in the Middle East could provide further upward momentum for the precious metal.
In the medium term, central banks’ demand for gold could lend additional support which remains significant despite China’s central bank pause in gold purchases for the third month in a row since June.
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