Gold fell below $2,500 per troy ounce as a stronger US dollar weakened investor demand, ANZ commodity strategists say.
Gold markets are waiting for Powell to speak
“Gold fell below $2,500/oz. This came amid concerns that the market is overstating the prospects for aggressive rate cuts by the Fed. Swap traders are pricing in nearly 100 basis points of cuts by year-end, a level that many prominent commentators believe is too much.”
“Investor positioning in Gold is also extremely net-long, leaving the market open to selling if the Fed fails to meet these expectations. This places a lot of importance on Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole later today.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
