Gold Nears Record, Market Awaits PCE Signals
Gold prices held near a record on Wednesday, with spot gold at $3,765.29/oz (04:03 GMT) after hitting a peak of $3,790.82 the day before. Investors digested cautious comments from Fed Chairman Jerome Powell, who emphasized the balance between persistently high inflation and a weakening labor market, while awaiting the release of US inflation later this week. Mild profit-taking briefly weighed on prices.
According to OANDA analyst Kelvin Wong, gold is being influenced by overbought technical indicators, making it vulnerable to a minor correction, but the short- to medium-term trend remains bullish. The market is awaiting US weekly jobless claims on Thursday and the PCE index—the Fed's favorite inflation gauge—on Friday for further direction.
Capital.com analyst Kyle Rodda believes that if Friday's data shows higher inflation (including the impact of tariffs), gold could be under pressure as expectations of easing diminish. Conversely, weaker inflation would strengthen the prospect of interest rate cuts and support gold.
Based on policy projections, Goldman Sachs predicts a 25 bps cut in October and December (with a 50 bps chance if the job market worsens), followed by two more cuts in 2026 to a range of 3%–3.25%. In geopolitics, NATO has asserted its readiness to use "all instruments" to defend itself following the Russian air incident, while US President Donald Trump believes Ukraine could retake all of its territory—a safe-haven factor that keeps gold high. (ads)
Source: Newsmaker.id
