GOLD ANALYSIS 27/06/24
Fed's Interest Rate Policy:
Fed Governor Bowman sees no interest rate cuts this year
Traders are heavily betting on federal interest rate cuts, which typically weaken the dollar and support gold prices.
Inflation and Economic Outlook:
Fed's Cook expects US progress on inflation to continue potentially stabilizing the dollar and impacting gold inversely.
US consumer confidence weakened slightly in June, indicating mixed economic sentiment that can influence safe-haven demand like gold.
Global Economic Indicators:
Canada's unexpected acceleration in inflation (May) may mirror broader inflationary pressures, affecting commodity prices like gold.
Federal Reserve's Policy Stance:
Fed member Bowman's cautious stance on interest rates favors the dollar initially, posing a challenge for gold as a hedge against inflation
Market and Political Factors:
Political events like the upcoming debate between Trump and Biden could introduce volatility, potentially boosting safe-haven assets like gold.
Bank of America's forecast of potential interest rate cuts by December 2024 contrasts with current expectations, signaling uncertainty and potential dollar strength over time
Im Bearish LongTerm Gold , Bullish Shortterm
Fed Governor Bowman sees no interest rate cuts this year
Traders are heavily betting on federal interest rate cuts, which typically weaken the dollar and support gold prices.
Inflation and Economic Outlook:
Fed's Cook expects US progress on inflation to continue potentially stabilizing the dollar and impacting gold inversely.
US consumer confidence weakened slightly in June, indicating mixed economic sentiment that can influence safe-haven demand like gold.
Global Economic Indicators:
Canada's unexpected acceleration in inflation (May) may mirror broader inflationary pressures, affecting commodity prices like gold.
Federal Reserve's Policy Stance:
Fed member Bowman's cautious stance on interest rates favors the dollar initially, posing a challenge for gold as a hedge against inflation
Market and Political Factors:
Political events like the upcoming debate between Trump and Biden could introduce volatility, potentially boosting safe-haven assets like gold.
Bank of America's forecast of potential interest rate cuts by December 2024 contrasts with current expectations, signaling uncertainty and potential dollar strength over time
Im Bearish LongTerm Gold , Bullish Shortterm
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