GOLD
Gold prices recorded modest gains in early Thursday trading, hovering close to the important $2,400 level. The markets remain volatile, with wide swings in stock prices significantly impacting trader sentiment. This uncertainty enhances gold's haven appeal, although the same volatility also caps short-term upside when risk-related assets record gains. However, the medium-to-long-term outlook for the precious metal is positive. The US economy is slowing down, and the Fed will almost certainly cut rates in September and likely repeat the action before the end of the year. This dynamic is expected to drive lower treasury yields and a softer dollar, boding well for the price of the non-yielding precious metal. It may be only a matter of time before we see the bullion price break through the $2,400 level and start approaching the record highs touched last month.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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