{"id":15044,"date":"2024-09-18T03:22:37","date_gmt":"2024-09-18T03:22:37","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15044"},"modified":"2024-09-18T03:22:37","modified_gmt":"2024-09-18T03:22:37","slug":"gold-remains-stable-as-markets-await-fed-decision","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-remains-stable-as-markets-await-fed-decision\/","title":{"rendered":"Gold remains stable as markets await Fed decision"},"content":{"rendered":"\n<p><strong>Key points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Spot gold edged 0.1% higher to $2,572.11 per ounce, rising near its recent record of $2,589.59.<\/li>\n\n\n\n<li>The market is pricing in a 64% probability of a 50 bps Fed rate cut, raising expectations for gold\u2019s appeal.<\/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 held their ground early Wednesday as the market remains on alert for the outcome of the Federal Reserve\u2019s meeting later in the day. <\/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\/xauusd-18Sept-1024x463.jpeg\" alt=\"\" class=\"wp-image-15045\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\">See: Gold trading at 2570.70 as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/p>\n\n\n\n<p>Gold recently hit a high of $2,589.7 before retracing to $2,570.61. The 30-minute chart shows that prices are still trading above key support levels near $2,560, which have held up despite the retracement from the highs. The MACD indicator suggests bearish momentum is waning, and the price is hovering near the 50-period moving average.<\/p>\n\n\n\n<p>We believe that if gold holds above $2,560, it could attempt to retest the recent high. However, failure to maintain these levels may see prices consolidate or drift lower toward the $2,550 range before making another directional move. <\/p>\n\n\n\n<p>Elevated geopolitical risks and concerns over global growth are expected to continue supporting the yellow metal&#8217;s upward bias.<\/p>\n\n\n\n<h1 class=\"wp-block-heading has-medium-font-size\"><strong>Surprise rise in U.S. retail sales adds to market uncertainty<\/strong><\/h1>\n\n\n\n<p>Further fuelling the uncertainty in markets,<a href=\"https:\/\/x.com\/business\/status\/1836023069392982478\"> U.S. retail sales data for August revealed a surprising 0.1% rise<\/a>, reflecting that the American economy may still be resilient. <\/p>\n\n\n\n<p>This unexpected economic strength could play into the Fed\u2019s decision-making, potentially influencing whether a more aggressive or conservative rate cut will be announced.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Geopolitical tensions bolster gold\u2019s safe-haven appeal<\/strong><\/h2>\n\n\n\n<p>Additionally, geopolitical risks remain at the forefront. <a href=\"https:\/\/x.com\/bpolitics\/status\/1836025780926652843\">The militant group Hezbollah has threatened retaliation against Israel after recent explosions in Lebanon<\/a> that claimed nine lives. Such unrest can further support gold\u2019s role as a safe-haven asset, especially in periods of geopolitical uncertainty.<\/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\">Israel said enabling residents displaced by Hezbollah attacks to return home is now a formal war objective, a signal the country is considering an all-out offensive against the Lebanese militant group <a href=\"https:\/\/t.co\/6FMl4ozpQc\">https:\/\/t.co\/6FMl4ozpQc<\/a><\/p>&mdash; Bloomberg Politics (@bpolitics) <a href=\"https:\/\/twitter.com\/bpolitics\/status\/1836025780926652843?ref_src=twsrc%5Etfw\">September 17, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Mixed performance in precious metals ahead of Fed decision<\/strong><\/h2>\n\n\n\n<p>Other precious metals saw mixed movements. Spot silver dipped 0.1% to $30.69 per ounce, platinum rose slightly by 0.1% to $982.79, and palladium was flat at $1,115.69. Each of these metals is also likely to react to the Fed&#8217;s decision, with potential ripple effects across the commodities market.<\/p>\n\n\n\n<p>We expect gold prices to maintain a cautious outlook ahead of the Fed\u2019s decision.<a href=\"https:\/\/www.vtmarkets.com\/blog\/research\/fomc-heres-why-wed-love-to-see-the-fed-cut-by-50-basis-points-in-september\/\"> If the Fed opts for a 50 bps cut<\/a>, gold could break past its recent record, testing new highs. A more conservative 25 bps cut, however, may temper gold&#8217;s momentum while keeping its appeal intact amidst geopolitical risks. In both scenarios, volatility in the broader market will be a key driver for gold&#8217;s performance over the coming days.<\/p>\n\n\n\n<p><strong>Start trading now \u2014 click <\/strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\"><strong>here<\/strong><\/a><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices held their ground early Wednesday as the market remains on alert for the outcome of the Federal Reserve\u2019s meeting later in the day.  -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":[28,7,18],"class_list":["post-15044","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-gold","tag-policy"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15044","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=15044"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15044\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}