Spot Gold held in proximity to a 2-week peak of $3,378.83 on Monday, underpinned by increased expectations of US monetary policy easing.
Gold rose to its highest level since August 11th last Friday, after Federal Reserve Chair Jerome Powell opened the door to a rate cut next month.
“There’s a decent level of support for gold around $3,350 over the near term, with Powell’s dovish hints allowing gold to carve out a prominent swing low on Friday,” City Index senior analyst Matt Simpson was quoted as saying by Reuters.
“A sustained rally likely requires softer PCE inflation and weaker employment data going forward. But with inflation likely to remain elevated, gold’s gains could remain capped beyond the expected initial bounce.”
At the annual symposium in Jackson Hole, Powell hinted at a possible rate cut in September, as risks to the job market were rising. Yet, a decision was not set in stone, the Fed Chair noted.
Markets are now pricing in about an 87% chance of a 25 basis point rate cut in September.
Spot Gold was last down 0.10% on the day to trade at $3,367.70 per troy ounce.
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