Gold Stood at $4,000, Why?
Gold prices held steady below $4,000 per ounce on Tuesday, as traders digested comments from Federal Reserve officials regarding interest rates. Gold prices fluctuated on Monday, but remained around $3,996.32 per ounce. Fed Chair Lisa Cook stated that the risk of a weak labor market outweighed the potential for inflation to rise again, although she did not support further interest rate cuts at next month's meeting.
Although gold briefly hit a record price last month, concerns about rising too quickly have driven prices lower. The market is now looking for further clues, with much of the gold price movement contingent on the Fed's decision. Looser monetary policy in the US could boost the appeal of non-interest-bearing gold.
In addition, China's announcement to cap value-added taxes on products sold by retailers has also added to uncertainty about gold demand. Traders are still awaiting further clarity on how the policy will be implemented and its impact on the market.
With many interconnected factors, gold continues to be under pressure, but it remains an attractive investment option if US monetary policy loosens. The main focus now is on the Fed's meeting next month, which could provide clearer direction for gold prices. (asd)
Source: Newsmaker.id
