GOLD
Gold prices edged lower in early Wednesday trading as investors took profits following the recent rally that saw the precious metal hit an all-time high on Tuesday.
Markets remain relatively calm for now, but this is likely to change as we approach the weekend, with the release of the latest FOMC minutes and, on Friday, Jerome Powell’s speech at the Jackson Hole symposium.
The Fed chairman is expected to address concerns over the slowing US economy, particularly in the labour market, and the progress made in curbing inflation.
Powell’s keynote is anticipated to serve as the launchpad for the Federal Reserve’s rate-cutting cycle, set to begin in September. If confirmed, these developments may lead to further weakness in treasury yields and a softer dollar, with gold prices potentially reaching new highs.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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