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Gold has been trading sideways since the beginning of the week between $3,330 and $3,370, with it stabilizing at midday trading today, Thursday, August 14, at $3,356 per ounce, up 0.05%, with the US dollar declining. Gold is affected by two factors: declining geopolitical tensions versus expectations of a US rate cut, which is causing sideways trading. The first option supports the metal’s decline, while the second option supports its rise against a decline in the US dollar.
\nThe decline in tariffs and the calming of trade policy concerns since the beginning of the week, especially with Trump extending the 90-day deadline imposed on China to reach a trade agreement, in addition to optimism surrounding the Ukrainian war, with anticipation of a meeting between the US and Russian presidents on Friday in Alaska, before culminating in a meeting with the Ukrainian president to discuss ways to end the war, is supporting risk appetite in the markets, and consequently, a decline in safe-haven currencies and assets, which negatively impacts gold’s trends. Expectations of a US interest rate cut, confirmed after Tuesday’s US inflation figures, are now being priced in by more than 99%, according to the CME’s FedWatch tool, for a 25 basis point rate cut at the September meeting. A 25 basis point cut at the October meeting is being priced in at 68%, and a further 265 basis point cut in December is being priced in at 55%. This is putting pressure on the US dollar, which is trading at its lowest levels in two weeks. This means a positive impact on gold, given the inverse relationship between the dollar and gold.
\nUS bond yields reflect this change in interest rate cut expectations, with the yield on the two-year note falling 1.3 basis points to 3.674%, while the yield on the 10-year note fell 2.7 basis points to 4.213%.
\nMarkets are awaiting the second round of inflation figures this evening, the Producer Price Index (PPI), which is expected to rise by 0.2% in July. Silver is trading down 0.41% at $38.34 an ounce, while platinum is trading down 0.03% at $1,339, while palladium is up 0.98% at $1,133.<\/p>\n
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Gold has been trading sideways since the beginning of the week between $3,330 and $3,370, with it stabilizing at midday trading today, Thursday, August 14, at $3,356 per ounce, up 0.05%, with the US dollar declining. Gold is affected by two factors: declining geopolitical tensions versus expectations of a US rate cut, which is causing […]<\/p>\n","protected":false},"author":1,"featured_media":7615,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"nf_dc_page":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-8205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-currency-markets"],"acf":[],"yoast_head":"\n