Spot Gold extended its streak of gains on Thursday, underpinned by expectations of an interest rate cut by the Federal Reserve in September in the wake of tame US CPI inflation data.
Markets are now pricing in about a 94% chance of a 25 basis point rate cut in September and about 6% chance of an out-sized 50 bps cut.
“Markets are pricing in the chance that the Fed cuts 50 basis points in September. So the dollar’s weakening, gold’s going up as a result, yields are also down,” Kyle Rodda, financial market analyst at Capital.com, was quoted as saying by Reuters.
“The technical setup of gold looks really constructive. The trend still looks higher. We just basically need to see the market break through $3,400 level on a sustained basis.”
The US Dollar Index was hovering above lows last seen on July 28th.
A weaker dollar makes dollar-priced Gold more appealing to international investors holding other currencies.
Meanwhile, market players awaited the summit between US President Donald Trump and Russia’s President Vladimir Putin on August 15th.
Spot Gold was last up 0.21% on the day to trade at $3,362.61 per troy ounce.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
