Gold Rally Stalls Near Record
Gold held near a record high despite weakening, as the market weighed positive US economic data and mixed statements from Fed officials. Spot prices briefly moved to around $3,743/oz, less than $50 off Tuesday's (September 25th) record.
Pressure arose after US new home sales surged to their fastest level since early 2022, allaying concerns about an economic slowdown and briefly strengthening the US dollar. A stronger dollar made gold relatively more expensive for global buyers, stalling the rally.
On the policy front, US Treasury Secretary Scott Bessent lamented the lack of clear direction on interest rate cuts, while Jerome Powell emphasized a cautious approach amid inflation risks and a weakening labor market. Lower interest rates are typically positive for non-yielding precious metals.
Structural support remains strong: central bank demand, news of China's plans to become a custodian of foreign gold reserves, and ETF inflows reaching a three-year high. Looking ahead, the market will focus on US PCE inflation this Friday for fresh clues on the direction of interest rate cuts.
Key Points:
Gold near-record: around $3,745/oz, rally stalled.
Strong US data (new home sales) → Dollar strengthens, pressuring gold.
Fed signals mixed: Powell cautious, Bessent pushes for clarity on cuts.
Medium-term support: central banks, China's plans, and strong ETF inflows.
Next catalyst: PCE release, the Fed's favorite inflation benchmark. (ayu)
Source: Newsmaker.id
