October 7, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Joseph Dahrieh, Managing Principal at Tickmill.
Gold continues to trade within a tight range, remaining near its all-time high. Recently, prices dipped slightly, influenced by strong U.S. labour market data that diminishes the likelihood of aggressive rate cuts by the Federal Reserve in their upcoming meeting. This shift has strengthened the dollar to a near seven-week high and prompted a recovery in U.S. Treasury yields, adding further pressure on gold.
Market participants are closely monitoring upcoming economic indicators, including the release of the Federal Reserve meeting minutes on Wednesday and the consumer price index report due on Thursday. These reports are expected to provide valuable insights into future market trends. Additionally, speeches from several Fed officials throughout the week may further shape market sentiment and impact the precious metal, potentially triggering volatility in the gold market.
Despite the current downward pressures, the outlook for gold remains cautiously optimistic due to ongoing geopolitical tensions in the Middle East, which tend to increase demand for gold as a safe-haven asset. Furthermore, uncertainty surrounding the U.S. presidential elections continues to sustain interest in gold. Long-term support for the yellow metal is also expected from strong demand from central banks, even though China’s central bank, the largest buyer of gold last year, has paused its purchases for reserves for the fifth consecutive month as of September, primarily due to a temporary rise in gold prices.
Disclaimer
Global Investor Ideas is part of the Investorideas.com content umbrella and is owned by Econ Corporate Services Inc. For Investorideas disclosure and disclaimer please visit the site directly
Disclaimer/Disclosure: GlobalInvestorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by GlobalInvestorideas and investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. If we are not the source for content but just a publisher , please contact the source of all content for questions and info. We are not responsible for third party content.