The Federal Reserve’s first interest rate cut in four and a half years will be the main focus for gold traders next week, said Barbara Lambrecht, Commodity Analyst at Commerzbank. Still, the fact that the rate cut is already largely priced in could keep the price reaction subdued, she said.
Fed rate cut on the horizon after another record high for gold
“We expect a small rate cut. Since the market has already widely anticipated a reduction in interest rates, we do not expect significant movements in the gold market after the price rose to an all-time high.”
“Swiss gold exports, due out on Thursday, are likely to be very high again. This is because exports to India are expected to remain high as a result of the significant reduction in import duty at the end of July, while flows into gold ETFs suggest that gold exports to the UK and US will also be high.”
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.
