Gold inched up after trading within a narrow range.
The yellow metal’s price action reflected ongoing uncertainty regarding the Federal Reserve’s timeline for interest rate cuts, leaving traders cautious.
However, Thursday’s US data supported the anticipated number of rate cuts for the remainder of the year. While Federal Reserve officials lean towards a single cut, market speculation suggests there could be two, driven by slowing inflation and cooling economic conditions.
These factors keep traders vigilant, waiting for more definitive cues that may emerge from upcoming economic reports.
The long-term outlook for gold remains bullish. Continuous demand from central banks, potential renewed purchases by the Chinese central bank, and upcoming political elections in major economies are expected to support gold’s appeal as a safe-haven asset.
Additionally, the initiation of easing cycles by several central banks further supports a positive trajectory for gold prices going forward.
