Gold Prices Rise Amid Anticipation of Fed Rate Cut

LONDON (July 10) Gold prices continue to experience an upward trend, reaching 2368 USD per troy ounce, fuelled by growing market anticipation of a potential rate cut by the US Federal Reserve. As investors focus on upcoming US inflation data, gold remains a focal point of investment interest.

In his recent testimony before Congress, Federal Reserve chair Jerome Powell highlighted June's improved yet uncertain economic indicators. He noted the need for more comprehensive data to solidify inflation forecasts and hinted at concerns over a slowing economy and a cooling job market. These developments are considered critical drivers for the speculated rate cut in September, currently perceived as likely by 73% of market analysts.

Additionally, increased investment flows into exchange-traded funds (ETFs) bolster gold's appeal, marking a second consecutive month of positive cash inflows. This investment trend underscores gold's role as a safe-haven asset amid financial market uncertainties.

Investing.com