{"id":15318,"date":"2024-10-10T03:47:27","date_gmt":"2024-10-10T03:47:27","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15318"},"modified":"2024-10-10T03:47:27","modified_gmt":"2024-10-10T03:47:27","slug":"gold-hold-steady-as-traders-await-fed-minutes","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-hold-steady-as-traders-await-fed-minutes\/","title":{"rendered":"Gold Hold Steady as Traders Await Fed Minutes"},"content":{"rendered":"\n<p>Key points:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fed minutes are due at 1800 GMT, with markets watching for clues on interest rate cuts.<\/li>\n\n\n\n<li>Gold could see gains if US CPI data shows softer inflation trends.<\/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 position around $2,619.75 per ounce in early trading on Wednesday, having hit a two-week low in the previous session. <\/p>\n\n\n\n<p>While gold futures edged slightly higher by 0.1% to $2,638.20, prices have yet to recover from the all-time high of $2,685.42 recorded on 26 September. <\/p>\n\n\n\n<p>Traders are hesitant ahead of the release of the Federal Reserve\u2019s meeting minutes, which could hint at the future trajectory of US interest rates.<\/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\/10\/image-12-1024x461.jpeg\" alt=\"\" class=\"wp-image-15319\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>See: Gold trading with bearish momentum below 2,624.32, with support at 2,604.78 on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Stronger Dollar Limits Gold&#8217;s Gains Ahead of Key Fed Minutes<\/strong><\/h2>\n\n\n\n<p>The dollar index\u2019s recent rally to a seven-week high has been a critical factor in capping gold\u2019s upward momentum. A stronger dollar makes gold more expensive for holders of other currencies, leading to subdued demand. The upcoming minutes from the <a href=\"https:\/\/www.vtmarkets.com\/blog\/research\/fomc-heres-why-wed-love-to-see-the-fed-cut-by-50-basis-points-in-september\/\"><strong>Fed\u2019s September policy meeting<\/strong><\/a>, set to be released at 1800 GMT, are likely to reveal the central bank\u2019s stance on inflation and future rate cuts, making them a key event for the precious metals market.<\/p>\n\n\n\n<p>Traders are also closely watching the US Consumer Price Index (CPI) report, due on Thursday, and the Producer Price Index (PPI) data on Friday. A soft CPI reading could boost gold prices, as lower inflation could increase the chances of rate cuts by the Fed.&nbsp;<\/p>\n\n\n\n<p><strong>In case you missed it: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/gold-down-as-fed-rate-expectations-cool\/\">Gold Down as Fed Rate Expectations Cool<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Gold&#8217;s Outlook Shaped by Shifting Rate Cut Expectations<\/strong><\/h2>\n\n\n\n<p>With the CME FedWatch Tool now indicating an 89% chance of a 25-basis-point rate cut next month, the outlook for gold could hinge on inflation data. Following a robust jobs report last week, traders had initially priced in a higher chance of a 50-basis-point cut, but sentiment has since shifted. <strong><a href=\"https:\/\/x.com\/economics\/status\/1821874338678591957\">Boston Fed President Susan Collins added to this narrative, stating that weakening inflation trends could support further rate cuts<\/a>.<\/strong><\/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\">The US central bank could begin easing rates if inflation continues on its downward path amid a strong labor market, Boston Fed President Susan Collins says <a href=\"https:\/\/t.co\/8K1hUp3BUb\">https:\/\/t.co\/8K1hUp3BUb<\/a><\/p>&mdash; Bloomberg Economics (@economics) <a href=\"https:\/\/twitter.com\/economics\/status\/1821874338678591957?ref_src=twsrc%5Etfw\">August 9, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Historically, gold performs well in low-interest-rate environments, given its lack of yield. This dynamic makes any signs of inflation cooling down and subsequent Fed rate cuts particularly bullish for the precious metal. <\/p>\n\n\n\n<p>September saw inflows into gold exchange-traded funds (ETFs) for the fifth consecutive month, with North American-listed funds continuing to increase their holdings, according to the World Gold Council.<\/p>\n\n\n\n<p>In the broader precious metals market, spot silver fell 0.3% to $30.62, while platinum gained 0.4% to $953.90. Palladium slipped by 0.3% to $1,018.04, reflecting mixed sentiment across the sector. <\/p>\n\n\n\n<p>Traders are likely to stay cautious ahead of the Fed minutes and inflation reports, with these data points set to shape the outlook for both gold and broader commodity markets in the short term.<\/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\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold remained steady as traders await the Fed&#8217;s September meeting minutes and key U.S. inflation reports that may influence rate decisions. &#8211; 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],"class_list":["post-15318","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-gold"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15318","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=15318"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15318\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}