Gold rose after trading within a narrow range, as it responded to uncertainty over the Fed’s rate cut timeline. Which caused traders to be wary. However, US data today supported expectations of the pace of rate cuts for the remaining months of the year. While Fed officials favor a single rate cut, market expectations point to the possibility of two cuts, given the growing impact of slowing inflation and unfavorable economic conditions. These factors will keep traders on the lookout for caution .
The long-term outlook for gold remains positive. Demand from central banks and potential purchases by China’s central bank are likely to continue, along with a series of upcoming elections scheduled for major economies, boosting gold’s safe-haven appeal. The initiation of monetary easing cycles by many central banks may also play a role in supporting expectations of higher gold prices in the future.
