{"id":15378,"date":"2024-10-16T03:25:26","date_gmt":"2024-10-16T03:25:26","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15378"},"modified":"2024-10-16T03:25:26","modified_gmt":"2024-10-16T03:25:26","slug":"gold-steady-as-traders-eye-fed-rate-outlook","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/gold-steady-as-traders-eye-fed-rate-outlook\/","title":{"rendered":"Gold Steady as Traders Eye Fed Rate Outlook"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Spot gold held at $2,660.36, with U.S. futures down 0.1% to $2,676.50 per ounce.<\/li>\n\n\n\n<li>Traders expect a 97.2% chance of a 25-basis-point Fed rate cut in November.<\/li>\n\n\n\n<li>Gold is forecast to rise to $2,941 per ounce in 12 months, according to LBMA delegates.<\/li>\n\n\n\n<li>Industrial production and retail sales data on Thursday will shape Fed expectations.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Gold prices remained stable during early Asian trading hours on Wednesday, with spot gold trading at $2,660.36 per ounce by 0036 GMT.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market participants are waiting for key U.S. economic data, including retail sales figures and industrial production, to assess the Federal Reserve&#8217;s next move on interest rates.<\/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\">Gold is expected to climb to new record highs in the next year, according to a survey of the bullion industry. <a href=\"https:\/\/t.co\/AY0dDoFNkd\">https:\/\/t.co\/AY0dDoFNkd<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1846294978999325024?ref_src=twsrc%5Etfw\">October 15, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">With a 97.2% probability of a 25-basis-point cut priced in for November, lower rates could bolster gold\u2019s appeal as a non-yielding asset.<\/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-26-1024x440.jpeg\" alt=\"\" class=\"wp-image-15379\" style=\"width:1338px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Gold consolidates near 2663.64, with bullish momentum building as traders monitor geopolitical risks and Federal Reserve signals, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a><\/em>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key takeaway we can see here is <strong>gold\u2019s consolidation around 2663.64<\/strong>, with the MACD showing improving momentum, indicating potential upside. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A break above <strong>2668.91<\/strong> could unlock further gains toward <strong>2675<\/strong>, while <strong>2650.75<\/strong> serves as critical support to watch. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We see the price fluctuating between a low of <strong>2658.70<\/strong> and a high of <strong>2665.16<\/strong>, indicating a period of consolidation with slight bullish momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the US dollar\u2019s recent volatility and mixed inflation data have kept investors leaning toward gold as a <strong><a href=\"https:\/\/gfo.ca\/market-trends\/market-trends-report-september-october-2024\/\">hedge against uncertainty<\/a><\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market participants are also watching upcoming Federal Reserve meetings, where further hints regarding the future path of interest rates could influence gold prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Focus on U.S. Economic Data and Fed Policy Guidance<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Traders are paying close attention to the U.S. retail sales report due Thursday, which could shape expectations for Fed policy, along with industrial production figures and weekly jobless claims.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/gold-dips-as-dollar-rises-all-eyes-on-fed-cues\/\">Gold Dips as Dollar Rises; All Eyes on Fed Cues<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With Fed officials such as San Francisco President Mary Daly reiterating the <a href=\"https:\/\/www.reuters.com\/markets\/rates-bonds\/feds-daly-says-monetary-policy-still-working-lower-inflation-2024-10-15\/\" title=\"\"><strong>likelihood of additional rate cuts<\/strong><\/a>, the market remains confident about further easing if economic data aligns with expectations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Atlanta Fed President Raphael Bostic, however, suggested just one more 25-bps reduction for the rest of the year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A reduction in interest rates makes non-yielding assets like gold more attractive. If the data meets or exceeds expectations, it could confirm a Fed cut and potentially lift bullion prices further.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Geopolitical Tensions Add to Safe-Haven Appeal<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the recent Israel-Hamas conflict has also been on traders\u2019 radar.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Israeli Prime Minister Benjamin Netanyahu informed French President Emmanuel Macron that Israel would <strong><a href=\"https:\/\/www.reuters.com\/world\/middle-east\/netanyahu-opposes-ceasefire-deal-that-would-not-halt-hezbollah-rearming-2024-10-15\/\">reject any ceasefire<\/a><\/strong> that allows Hezbollah to regroup.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With ongoing tensions in the region, gold\u2019s status as a safe-haven asset remains intact, which could support prices if the conflict escalates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Long-Term Outlook for Gold and Other Metals Remains Bullish<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Delegates at the London Bullion Market Association (LBMA) conference in Miami forecast that gold prices could rise to <strong>$2,941 per ounce<\/strong> within the next 12 months, reflecting a generally bullish sentiment for precious metals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As markets await more clarity on the U.S. economy, currency trends, and geopolitical developments, these metals remain sensitive to shifts in both economic and geopolitical risk factors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold prices held at $2,660 as traders await U.S. economic data to assess Fed rate cuts, with geopolitical risks keeping demand steady. &#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":[7,46],"class_list":["post-15378","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\/15378","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=15378"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15378\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}