Soaring High:
Gold prices have soared, with the precious metal trading at $2,433, just shy of the all-time high of $2,450. This surge comes amid a softer US inflation report, which has increased bets on the Federal Reserve cutting rates, with a 76% chance for a reduction in September.
Market Sentiment:
The market exhibits a mixed yet slightly positive sentiment. Major indices like the S&P 500 and NASDAQ 100 are gaining, while the Dow Jones remains nearly flat. The anticipation of rate cuts by year-end could potentially lower the Federal funds rate to 4.75%-5.00%.
Fed’s Influence:
Fed speakers are set to dominate the US economic docket this week, with the release of the latest Fed meeting minutes on Wednesday. Upcoming data, including US Initial Jobless Claims and the Chicago Fed National Activity Index, are expected to reflect a cooling labor market.
Technical Outlook:
The technical analysis suggests that gold prices, having hit a new all-time high, are poised to test even higher levels. The Relative Strength Index (RSI) indicates strong buying momentum, with the next targets set at $2,475 and $2,500, should gold breach its current peak.
