Gold was mostly flat today, stabilising after volatility during the last few trading sessions.
This stability is due to reduced recession fears following the release of US initial jobless claims data, which were lower than expected. However, gold could remain supported by the anticipation of a Fed interest rate cut in September.
The forthcoming US Consumer Price Index (CPI) data for July will be critical in shaping expectations regarding the Fed’s rate cuts trajectory for the year. This data, expected next Wednesday, could introduce some volatility in the market.
At the same time, escalating geopolitical tensions could reinforce gold’s appeal as a safe-haven asset. Markets are on edge over potential retaliatory strikes in the Middle East and the implications of Ukrainian actions in Russia.
Global gold ETFs recorded significant inflows in July, attracting $3.7 billion, marking their strongest month since April 2022. This influx underscores the continuing high demand for gold and could support higher prices.
