{"id":15024,"date":"2024-09-16T10:15:31","date_gmt":"2024-09-16T10:15:31","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15024"},"modified":"2024-09-16T10:15:31","modified_gmt":"2024-09-16T10:15:31","slug":"oil-prices-surge-on-rate-cut-hopes-but-demand-worries-linger","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/oil-prices-surge-on-rate-cut-hopes-but-demand-worries-linger\/","title":{"rendered":"Oil prices surge on rate cut hopes, but demand worries linger"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Gold prices reached an all-time high of $2,585.01 per ounce, marking a 23% rise in 2024.<\/li>\n\n\n\n<li>Safe-haven demand and lower U.S. yield expectations are driving gold&#8217;s outperformance.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>Gold prices surged to new record highs on Monday as a weakening dollar and mounting expectations for a large interest rate cut by the U.S. Federal Reserve drove market demand. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/09\/20240916-175525-1024x473.jpg\" alt=\"In the XAUUSD chart on vtmarkets.com, gold has extended its bullish run, closing at $2,585.01 after opening at $2,579.65. This surge reflects a trend influenced by factors such as a weaker U.S. dollar and shifting expectations for U.S. interest rate cuts. The MACD (12, 26, 9) has crossed into bullish territory, confirming the upward momentum seen in recent sessions.\" class=\"wp-image-15025\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>SEE: Gold sees sustained upswing on the<a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">\u00a0VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>We turn our attention to the charts. In the XAUUSD chart, gold has continued its bullish run, closing at $2,585.01. The price surged after opening at $2,579.65, reflecting a trend driven by what our analysts believe include, the softer U.S. dollar and changing expectations for U.S. interest rate cuts. <\/p>\n\n\n\n<p>We see also that the MACD (12,26,9) has crossed into bullish territory, further confirming upward momentum in recent sessions.<\/p>\n\n\n\n<p>Technically, gold has been supported by the 50-day and 30-day moving averages, with no signs of immediate bearish pressure. A break above $2,600 could extend the rally further, while any disappointing economic data from the U.S. might fuel additional gains in the near term. <\/p>\n\n\n\n<p>Most notably, UBS has labelled gold <a href=\"https:\/\/www.ubs.com\/global\/en\/wealth-management\/who-we-serve\/marketnews\/article.1415367.html\" target=\"_blank\" rel=\"noopener\" title=\"its &quot;Most Preferred&quot; asset in global allocation\">its &#8220;Most Preferred&#8221; asset in global allocation<\/a>, highlighting the metal&#8217;s 23% price jump this year. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">UBS says gold is its &quot;Most Preferred&quot; in its global asset allocation<a href=\"https:\/\/t.co\/aUN07ihbrD\">https:\/\/t.co\/aUN07ihbrD<\/a><\/p>&mdash; ForexLive (@ForexLive) <a href=\"https:\/\/twitter.com\/ForexLive\/status\/1835501590960075226?ref_src=twsrc%5Etfw\">September 16, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;<em>We see gold prices rising to USD 2,600\/oz by the end of 2024 amid firm demand from central banks and a likely rise in activity from exchange traded funds.&#8221; \u2014 UBS, 19 Aug 2024<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>The surge in prices reflects a combination of falling U.S. bond yields and central banks\u2019 moves to diversify away from the U.S. dollar.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Factors supporting gold\u2019s rally<\/strong><\/h1>\n\n\n\n<p>Several macroeconomic factors have reinforced gold&#8217;s bullish momentum. Key among these is the European Central Bank\u2019s (ECB) rate cuts, which have reduced returns on euro-denominated assets, pushing investors toward gold. <\/p>\n\n\n\n<p><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/gold-inches-higher-as-investors-eye-us-data-for-rate-cues\/\" target=\"_blank\" rel=\"noopener\" title=\"Gold inches higher as investors eye US data for rate cues\">Gold inches higher as investors eye US data for rate cues<\/a><\/strong><\/p>\n\n\n\n<p>Additionally, August marked the fourth consecutive month of inflows into physically-backed gold ETFs, indicating sustained interest from institutional investors.<\/p>\n\n\n\n<p>However, trimmed expectations for the scale of potential U.S. Federal Reserve cuts have somewhat offset the ECB&#8217;s easing. The market now expects a 59% chance of a 50-basis-point (bp) reduction by the Fed this week, according to the CME FedWatch tool. <\/p>\n\n\n\n<p>This would mark the first rate cut since 2020 and could further weaken the dollar, making gold even more attractive to international buyers.<\/p>\n\n\n\n<p>Looking at other precious metals, Silver also experienced gains, with prices rising 0.6% to $30.85 per ounce, reaching a two-month high. Platinum dropped 0.7% to $988.46, while palladium saw a modest uptick of 0.2%, trading at $1,070.25.<\/p>\n\n\n\n<p>As geopolitical risks remain heightened and global interest rates are expected to stay lower for longer, demand for precious metals, especially gold, could see sustained support in the coming months. <\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">\u00a0start trading<\/a>\u00a0now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices surged to new record highs on Monday as a weakening dollar and mounting expectations for a large interest rate cut by the U.S. Federal Reserve drove market demand. -vtmarkets.com<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[7,46],"class_list":["post-15024","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold","tag-precious-metals"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15024"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15024\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}