Gold Held Steady, Market Awaits Signals of a Fed Rate Cut
Gold prices moved steadily around $3,338 in trading on Tuesday afternoon during the European session. The precious metal briefly resumed its moderate buying trend, but gains were restrained as investors opted for caution. The market is awaiting clearer signals regarding the direction of Federal Reserve policy, particularly regarding the possibility of an interest rate cut in September.
Despite growing expectations that the Fed will cut interest rates, the US dollar failed to maintain its gains from the previous day. This provides room for gold to remain in demand, especially amidst slightly weakening global risk sentiment. As a safe haven asset, gold remains a preferred choice for investors during times of heightened uncertainty.
However, recent optimism regarding the potential for a Russia-Ukraine peace agreement has also restrained gold's gains. These peace hopes have reduced the market's demand for safe-haven assets like gold, limiting the opportunity for more aggressive gains in the short term.
Looking ahead, the market's primary focus will be on the release of the FOMC Minutes on Wednesday and Fed Chair Jerome Powell's speech at the Jackson Hole Symposium later this week. These two major events are expected to determine the future direction of gold prices, whether they will break through to higher levels or fall again. (ayu)
Source: Newsmaker.id
