Gold Consistent, Pace of Easing Key
Gold prices edged up on Friday and are poised to post a fifth consecutive weekly gain after the Fed's first interest rate cut of the year. Spot gold rose 0.2% to $3,650.89/oz (08:17 GMT), while December futures rose 0.1% to $3,683.40; on a weekly basis, bullion is up 0.2%.
The main driver remains the Fed's policy direction. Last Wednesday, the central bank cut 25 basis points (bps) and left the door open for further easing, but warned of persistently stubborn inflation. Chairman Jerome Powell called the move a "risk-management cut" amid a weakening labor market and emphasized a "meeting-by-meeting" approach. The market is now pricing in a 92% chance of another 25-bps cut at the October meeting (CME FedWatch).
According to Han Tan (Nemo.money), the Fed's prospects remain fuel for bullion bugs, alongside central bank buying support and safe-haven demand—so a drop below $3,600 is potentially short-lived. Nitesh Shah (WisdomTree) sees dollar depreciation as a catalyst and targets gold around $4,300 in 12 months.
Year-to-date, gold is up ~39% and hit a record $3,707.40 on Wednesday. In the physical market, Indian gold premiums rose to a 10-month peak ahead of the festival season. Other metals: silver +0.8% to $42.12, platinum +0.2% to $1,386.65, palladium -0.4% to $1,146.43—but all three are still headed for weekly declines.
Key points:
Spot gold $3,650.89 (+0.2%); weekly +0.2%.
Fed -25 bps; 92% chance of another -25 bps in October.
Powell: risk management, not aggressive pace of easing.
Bullish targets: central bank support, safe haven, weakening dollar; projected $4,300 a year ahead.
Record $3,707.40 reached; India premium reaches 10-month high. (ayu)
Source:Newsmaker.id
