GOLD
Gold prices edged up in early Tuesday trading but remain below the $2,400 level. After hitting an all-time high less than two weeks ago, the price of the precious metal dropped and is currently trading more than 3% below that record. The record high touched earlier in July coincided with the lowest point for the US dollar in months, boosting the bullion price due to the inverted correlation between the two assets. However, since then, traders' bias has shifted to the greenback. Over the last two weeks, the US dollar has been recovering as investors become more cautious about expecting significant rate cuts in the US. While a September cut remains the base case for most, what happens next is less clear. The focus of traders is now on the conclusion of tomorrow's Federal Reserve meeting, which could provide more clues on the central bank's monetary policy stance. Any dovish hints from Jerome Powell would be positive for gold prices, while a more assertive posture would strengthen the dollar and hurt the precious metal.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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