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Gold Prices Stall on Stronger Dollar as Market Awaits Fed

the job market, U.S. productivity, and manufacturing will provide further insights into the economy's health and influence investor decisions.

  • Publish date: Tuesday، 30 July 2024
Gold Prices Stall on Stronger Dollar as Market Awaits Fed

Gold Prices Stall on Stronger Dollar as Market Awaits Fed Meeting

Gold prices stalled below resistance on Monday due to a stronger dollar, with bullion investors turning their attention to this week's Federal Reserve meeting and upcoming economic data for insights on the market's near-term performance.

-Gold Dips Below Resistance: Gold fell below the $2,400 per ounce resistance level in midday trading, dropping $5.09 to $2,383 per ounce after struggling throughout the previous week.
-Silver Continues Slide: Silver also continued its downward trend from last week, trading down $0.40 at $27.70 per ounce.

Contributing Factors

Several conflicting factors have contributed to tighter trading, including:

- Stronger Dollar: The strengthening dollar has impacted gold prices.
- Geopolitical Tensions: Concerns that Lebanon may be drawn into ongoing Middle East conflicts have also affected the market.
- Chinese Bullion Demand: A quarterly report from the China Gold Council revealed a nearly 6% drop in bullion demand compared to the previous year, amid fears of an economic slowdown in China. The People's Bank of China halted gold purchases in May and June after 18 consecutive months of buying.

Anticipated Federal Reserve Meeting

Market participants are looking to Wednesday’s Federal Open Market Committee (FOMC) meeting for signs of future stability:

- Economic Reports: Policymakers will review reports from last week showing a surprising increase in economic activity in June and a 0.2% rise in the core PCE index for the previous month, exceeding the projected 0.1% increase. The 12-month core inflation rate remained at 2.6% for the second month in a row, above the forecast of 2.5%.
- Interest Rate Outlook: The Fed is expected to keep the benchmark interest rate at 5.25%-5.5% this week, but investors anticipate potential easing by September.

Key Reports This Week

Additional reports on consumer confidence, the job market, U.S. productivity, and manufacturing will provide further insights into the economy's health and influence investor decisions.

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