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Gold prices, which have been trending sideways, are poised to end the week on a positive note despite the uncertainty surrounding expected rate cuts in the United States, but traders will be focusing on a speech by Federal Reserve Chairman Jerome Powell next week for clues on the size of the rate cuts.
In addition, following the rise in global risk aversion last week, mild inflation data released at the beginning of this week confirmed the market’s expectations of an imminent interest rate cut by the Federal Reserve, but also brought expectations that the pace of the cut would be restrained.
Following last week’s volatility, U.S. economic data eased fears of a recession in the world’s largest economy. This week was also calmer as the data also tempered expectations that a big rate cut would be needed in September.
Yesterday, the U.S. released better-than-expected indicators such as retail sales and weekly unemployment claims. With this development, concerns that the labor market has not cooled sufficiently have increased, and gold prices have been restrained by the appreciation of the U.S. dollar.
The market currently sees only a 25% chance that the Fed will cut interest rates by 50 basis points next month. Last week, the probability was priced at 55%.
Gold market updates
Gold is trading at $2,000,456 per ounce in the spot market.
As of 9:00, the volume of gram gold traded was 2,000 659 TL, the volume of quarter gold traded was 4,00348 TL, and the volume of republic gold traded was 17,00342 TL.
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