Gold Prices Rise as Powell Keeps Rate-Cut Hopes Alive and Central Banks Intervene

Gold prices are on the rise, and it's all thanks to the Federal Reserve's decision to keep rate-cut hopes alive.

Powell, the Fed Chairman, has hinted at a potential rate cut, which has investors scrambling to buy gold as a safe-haven asset.

The price of gold has increased by 1.5% in the past week alone, with investors betting on a rate cut.

Central banks are also intervening in the market, buying gold to diversify their reserves and reduce their reliance on the US dollar.

Gold prices are on the rise, and it's not hard to see why. The Federal Reserve Chair Jerome Powell's speech has fueled hopes of a future interest rate cut, which is good news for gold investors.

The U.S. dollar has been holding steady as investors evaluate the latest geopolitical and economic developments, but that's not the only factor at play here. Gold prices have been bolstered by the latest US jobs reading, which showed that US companies added the fewest jobs last month since the start of 2021.

This weak jobs report has added to the evidence that the labor market is shifting into a lower gear, boosting chances of a rate cut by the Federal Reserve. If the Fed does cut rates, it could be positive for non-interest bearing gold, which has already been supported by a weaker dollar.

Gold prices have risen significantly this year, up by more than 20% and peaking at a record $2,531.75 an ounce in August. This surge in gold prices is also being driven by strong over-the-counter purchases and haven demand due to conflicts in the Middle East and Ukraine.

Gold prices are holding their gain above $2,500 an ounce, thanks to the latest US jobs reading and rate-cut hopes.

The US companies added the fewest jobs last month since the start of 2021, which is a sign that the labor market is shifting into a lower gear. This boosts chances of the Federal Reserve's expected pivot to monetary easing in September.

A weak US payrolls report on Friday could help determine whether the Fed cuts by 25 or 50 basis points at its next meeting. Lower rates are typically positive for non-interest bearing gold.

Bullion is up by more than 20% this year and peaked at a record $2,531.75 an ounce in August.

Gold prices are rising due to hopes of a future interest rate cut, fueled by Federal Reserve Chair Jerome Powell's speech.

Powell mentioned that efforts to reduce price pressures have been successful, putting the U.S. on a 'deflationary path.' This has sparked optimism among markets that the Fed might cut rates by September.

David Wilson, a seasoned expert in currency and commodities trading, notes that more proof is needed before a rate cut is guaranteed.

Gold prices rose after Fed Chair Jerome Powell's speech, fueled by hopes of a future interest rate cut.

Powell mentioned that efforts to reduce price pressures have been successful, putting the U.S. on a 'deflationary path'.

Markets are optimistic that by September, the Fed might have enough evidence to start cutting rates.

Recent economic data indicated that inflation was easing, according to Powell.

Traders widely anticipate a rate cut in September.

David Wilson, an expert in currency and commodities trading, notes that more proof is needed before a rate cut is guaranteed.

Central Bank Purchases have been a significant factor in maintaining gold prices. Central banks have been actively buying gold, contributing to its sustained gains.

Strong investment demand from Asia has also been a driving force behind gold's performance. This demand has been a key factor in gold's ability to hold its ground despite potential economic shifts.

Central bank gold buying has been a steady trend, helping gold maintain its hefty gains.