October 31, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas releases market commentary from Gold Pulls Back, Downside Risks Limited.
Gold slightly retreated as the market anticipates further economic data releases from the U.S. Despite this pullback, gold remains near historical highs, driven by strong momentum that has pushed the market to record levels. Recent U.S. economic data indicates robust growth in the third quarter, even if it was less than expected, with personal consumption and sales rising significantly. This suggests a resilience of American consumers and highlights elevated inflation risks, underscored by unexpectedly high core PCE price figures from the last quarter.
The data could continue to drive the Federal Reserve toward more caution regarding potential rate cuts, which could benefit Treasury yields and the dollar, slightly capping gold’s advances. Attention now shifts to the upcoming PCE figures and payroll data; if these numbers remain strong, they could weigh on gold.
However, gold could continue to find support from uncertainties surrounding the U.S. elections and their potential impact. Geopolitical tensions in the Middle East could continue to support gold as a safe-haven asset although signs of easing tensions could play against the asset.
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