Gold Surges to Record Highs

26 Eylül 2024

Gold Surges to Record Highs: Rate Cut Expectations, Economic Uncertainties, and Geopolitical Tensions Fuel Rally.

Market comment on behalf of Oliver Stevens – Product Development and Market Expansion Manager at Flow Community

Gold has continued to see some gains, trading near record levels. The market remained driven by market expectations of further interest rate cuts this year. In particular after last week’s Federal Reserve meeting and dovish comments from Fed members this week. Investors are now pricing in a 60% probability of an additional 50 basis points reduction in November.

Markets are looking ahead to upcoming US macroeconomic data releases, including the PCE report, final Q2 GDP figures, weekly initial jobless claims, and durable goods orders. Speeches from Federal Open Market Committee (FOMC) members, particularly Fed Chair Jerome Powell’s address later today, could also come under scrutiny. These factors are likely to influence gold price movements and may create volatility in the short term. However, the medium-term outlook for gold remains favorable, given the general easing cycle adopted by several central banks.

Moreover, persistent concerns about China’s economic recovery, despite recent stimulus measures, have heightened fears of a potential global economic slowdown. This uncertainty is prompting more investors to seek safe-haven assets like gold. Additionally, geopolitical risks—especially escalating tensions in the Middle East—are further enhancing gold’s appeal.

 

Zaid Barem / YMM