GOLD
Gold prices edged higher in early European trading, remaining close to the all-time highs reached earlier in the week. Bullion saw a slight dip in demand during the previous session after stronger-than-expected US retail sales data for August was released.
Despite this, the consensus among traders is that the Federal Reserve remains focused on preventing a recession, especially in light of concerns about the labour market. With this in mind, attention is now firmly on today’s Fed rate decision, with a growing number of traders anticipating a 50-basis-point cut. If this scenario materializes, it would likely weaken the dollar, boosting gold prices.
The extent of the upside for precious metals will depend on how dovish Jerome Powell’s tone is during his post-announcement address. Should the Fed Chair signal the possibility of further rate cuts later in the year, gold could be poised to reach new record highs.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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