Gold Prices Rise on Fed Rate Hike Expectations
Gold prices are being bolstered by the anticipation that the Federal Reserve will implement its final rate increase in the current tightening cycle during the upcoming Fed meeting on July 25-26. According to a Reuters poll of economists, a 25-basis point hike is widely expected.
The allure of gold is further enhanced by the prospect of lower interest rates, which diminish the opportunity cost of holding the non-yielding precious metal.
Ilya Spivak, the head of global macro at Tastylive, pointed out that there is some cautious positioning in the market ahead of the Federal Open Market Committee (FOMC) meeting next week. The Fed had previously indicated a reluctance to ease rates in the near future.
Spivak highlighted that for gold to see a significant surge towards all-time highs, there would need to be notable deterioration in the labor markets, providing the Fed with a compelling reason to refrain from further rate increases. In the absence of such developments, the potential for a drastic upward move in gold prices appears limited, barring any unforeseen shocks.
GOLD BUY 1963- 1965💯💯
✅ TP1: 1970
✅ TP2: 1975
✅ TP3: 1980
🛑 SL: 1958
The allure of gold is further enhanced by the prospect of lower interest rates, which diminish the opportunity cost of holding the non-yielding precious metal.
Ilya Spivak, the head of global macro at Tastylive, pointed out that there is some cautious positioning in the market ahead of the Federal Open Market Committee (FOMC) meeting next week. The Fed had previously indicated a reluctance to ease rates in the near future.
Spivak highlighted that for gold to see a significant surge towards all-time highs, there would need to be notable deterioration in the labor markets, providing the Fed with a compelling reason to refrain from further rate increases. In the absence of such developments, the potential for a drastic upward move in gold prices appears limited, barring any unforeseen shocks.
GOLD BUY 1963- 1965💯💯✅ TP1: 1970
✅ TP2: 1975
✅ TP3: 1980
🛑 SL: 1958
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.