Reported 8 months ago
On June 24, 2024, international gold prices remained steady with potential inflow of safe-haven funds due to geopolitical tensions in the Middle East. However, if this Friday's core PCE data does not cool down as expected by the market, gold prices may retest $2,280 per ounce. Despite market expectations of a 1 basis point rate cut by the Federal Reserve this year, there is anticipation for a 2 basis point rate cut. Recent US economic data has been lackluster, with uncertainty surrounding September rate cuts. Gold prices saw fluctuations due to conflicting statements from Fed officials, disappointing US data, and renewed tensions in the Middle East, reaching $2,368.6 before dropping to $2,320. With better-than-expected initial US PMI data for June, rate cut expectations eased and gold prices settled at $2,320 by the end of the week, showing a 0.52% decrease from the previous Friday's closing. The future of gold prices remains uncertain, with support seen below $2,300 and technical indicators suggesting possible price support. Escalating conflicts between Israel and Hezbollah may continue to support gold prices, but the uncertainty lies in US inflation data not nearing the 2% target and the impact of recent economic indicators on the Fed's rate cut stance. The article also mentions a survey by the World Gold Council showing an increased interest from central banks in holding gold reserves, with 29% expecting to increase gold reserves in the next 12 months and 69% foreseeing a higher allocation to gold reserves in the next five years compared to previous years.
Source: YAHOO