Commodities Morpher AI identified a bearish signal. The commodity price may continue to fall based on the momentum of the negative news.
Gold, a traditional safe-haven asset, experienced a strong bearish movement today amidst recent record highs and market uncertainty.
XAU commodity is down 0.3% on Sep 18, 2024 19:20
Gold rose by almost 1% to approach $2594, a new record high, after the Fed delivered 50bps rate cut, the first one in more than 4 years. The central bank has also issued updated economic forecasts. Policymakers are anticipating a total of 100 basis points of rate cuts by the end of the year, indicating two more 25-basis-point reductions at the final two meetings of the year.
Gold increased to an all-time high of 2590.00 USD/t.oz. Over the past 4 weeks, Gold gained 3.32%, and in the last 12 months, it increased 33.96%.
Gold held around $2,570 per ounce on Wednesday, close to record highs, amid a weaker dollar ahead of the highly anticipated Federal Reserve interest rate decision. The FOMC's two-day policy meeting concludes later today, with the Fed expected to announce its first rate cut since 2020. Fed fund futures show that investors increasingly expect a 50-basis-point cut, with markets pricing in a 65% probability, while the chance of a smaller 25-basis-point cut stands at 35%. Meanwhile, gold slightly eased on Tuesday as data revealed US retail sales rose 0.1% in August, contrary to a forecasted 0.2% decline, following a revised 1.1% surge in July, suggesting relatively strong consumer spending. Elsewhere, the BoE is expected to keep UK rates unchanged on Thursday, while the BoJ is likely to maintain rates on Friday but signal a readiness to hike if forecasts are met.
Gold steadied around $2,580 per ounce on Tuesday, hovering at record highs, supported by ongoing weakness in the US dollar and rising expectations of a significant rate cut by the Federal Reserve this week. Fed fund futures suggest that investors are increasingly anticipating a 50-basis-point cut, with markets pricing in a 67% probability, while the chance of a smaller 25-basis-point reduction stands at 33%, as per the CME’s FedWatch Tool. Meanwhile, the BoE is widely expected to announce that UK rates will remain unchanged, while the BoJ is also anticipated to hold rates but signal readiness to hike if forecasts are met. Elsewhere, gold's safe-haven appeal was strengthened by some political uncertainty, following reports that Republican presidential candidate Donald Trump faced a second assassination attempt on Sunday.
Gold rose above $2,580 per ounce on Monday, trading at record levels, supported by a weaker dollar and lower bond yields amid growing expectations of an aggressive US interest rate cut this week. Fed fund futures indicate that investors are increasingly betting the Federal Reserve will opt for a 50 basis point cut, with markets pricing in a 59% chance, while the odds for a modest 25 basis point reduction stand at 41%, according to CME’s FedWatch Tool. This follows a weekly job report that signaled further softening in the labor market, as evidenced by weak August payroll data. Recent data also showed that US inflation is trending lower, though some stickiness remains. Additionally, gold benefited from the ECB's decision to lower its main interest rate last week, reflecting growing confidence among policymakers that inflation in the region is steadily declining.
Trade Gold and 700+ other stocks, cryptocurrencies, commodities and more on Morpher. Sign up now and never miss out on the action again!
