Gold Prices Steady Above $2,495 After Hitting Record High
Gold prices remain strong above $2,495 during Wednesday’s Asian trading, holding onto gains after reaching a new all-time high of $2,532. Traders are cautious, considering the widespread risk aversion, and are holding off on new positions before the release of the US Federal Reserve’s July meeting minutes expected later on Wednesday.
From a technical standpoint, last Friday’s breakout above the triple top resistance around the $2,479-2,480 area, followed by a strong move beyond the $2,500 psychological level, served as a new catalyst for bullish traders. If the all-time-high level is broken, then the next target would be $2,575. The $2,500 round figure is likely to support the downside for gold prices near the $2,483 resistance level.
GBP/USD Nears 1.3140 Breakout as Bullish Momentum Builds
The GBP/USD pair is approaching a potential breakout above 1.3140 as bullish momentum continues to build. The RSI indicator has steadily increased in recent sessions.
Technically, the pound faces immediate resistance at 1.3050 and 1.3140, key levels that need to be surpassed for the upward trend to persist. Support is currently at 1.2955 and 1.2895. If these levels are breached, the next support level to watch is 1.2865.
Market Summary: Euro and GBP Uptrend, USD/JPY and Silver Testing Key Levels
The euro strengthens against the dollar, targeting resistance levels at 1.1230 and 1.1252, driven by dollar weakness and yen volatility. GBP/USD is at a pivotal trend line, with the potential to either break out or retreat to support at 1.3012. The yen faces critical tests as USD/JPY continues its downtrend, approaching key support levels at 143 and 140. Gold hovers near significant support at 2489, with expectations for an uptrend continuation if this level holds. Silver encounters resistance around 30, with potential declines if it fails to break through this barrier.
Euro Gains Momentum Amid Weakening Dollar and Yen Volatility
In essence, with the dollar weakening and volatility rising due to the yen’s monetary policy, market participants are shifting their focus to the euro. From a technical standpoint, as long as the price remains above 1.1117, buying pressure is likely to persist. Consequently, the price might begin testing the range between 1.1230 and 1.1252.
GBP/USD Decision Point: Will It Break the Trend Line?
GBP/USD is in a critical area. The upward trend that has been ongoing since the beginning of the year is very close to its upper boundary and is at a decision point. The effort to break above the trend line is ongoing. As long as it remains below this level, it could return to support levels around 1.3012."
Euro Hits New Highs, Yen Strengthens, and Gold Stabilizes
The Euro has climbed to a new 13-month high against the US dollar as expectations grow for Federal Reserve rate cuts, with the dollar weakening in response. USD/JPY remains under pressure as Japan’s core CPI hits 2.7%, reflecting the Bank of Japan’s hawkish stance and fueling yen strength. Gold holds steady near $2,490 per ounce, awaiting further Fed policy signals, while GBP/USD trends upwards within its channel, eyeing a target of $1.3185. Silver is testing the 29.60 support level, with potential gains toward 30.48 if the support holds.
Euro Nears New High: USD Declines with Anticipated Fed Rate Reductions
The Euro reached a new 13-month peak against the US dollar on Monday and is close to achieving another high today. The US dollar continues to weaken as the Federal Reserve plans a series of interest rate cuts, anticipated to begin in September. Fed Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium on Friday could provide the market with clearer insight into the central bank’s current outlook and the anticipated pace of rate reductions.
Gold Prices Remain Firm as Fed Rate Cut Expectations Build
Gold stabilized around $2,490 per ounce on Friday, after dropping more than 1% in the previous session from its record highs, as markets awaited Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later in the day. There is widespread anticipation that Powell will indicate the Fed’s plan to start easing its restrictive policy in September, though details on the pace and extent of the reduction are expected to be limited. Recently, several Fed officials have shown optimism about a potential rate cut next month, a sentiment reflected in the latest FOMC minutes. Traders are still expecting 100 basis points in rate cuts by the end of the year, which would reduce the opportunity cost of holding non-yielding assets. Moreover, recent data suggests the US labor market might struggle under restrictive rates. Initial jobless claims in the US slightly exceeded forecasts in mid-August, raising concerns after the significant downward revision to nonfarm payrolls for the year ending in March.
EUR/USD Rises, Yen Strengthens, and Gold Holds Steady
The Euro surged to a 13-month high against the dollar, driven by Federal Reserve Chair Jerome Powell’s indication of a potential rate cut in September, pushing the dollar index to its lowest level since July 2023. In contrast, the Japanese yen strengthened past 144 per dollar as Bank of Japan Governor Kazuo Ueda hinted at possible policy adjustments amid high inflation. Gold remained firm near $2,510 per ounce, buoyed by expectations of Fed rate cuts and heightened geopolitical concerns. GBP/USD rose to 1.3215, benefiting from a weaker dollar and anticipated Fed rate cuts, while silver stayed within a narrow range, with its direction dependent on upcoming economic data and Fed decisions.
Gold Prices Remain Strong with Fed Rate Cut on the Horizon
Gold remained steady at around $2,510 per ounce on Monday, staying near record highs following Federal Reserve Chair Jerome Powell’s reinforcement of expectations for an interest rate cut in September. In his speech at Jackson Hole last week, Powell signaled that the Fed is ready to adjust its policy, with the timing and scale of rate cuts contingent on upcoming economic data. He highlighted increased risks to the job market while noting a decrease in inflation risks. The Federal Open Market Committee (FOMC) now feels more confident that inflation is moving towards the 2% target, strengthening the argument for lowering borrowing costs. Market expectations are divided between a 25 basis point or 50 basis point cut at the Fed’s September meeting, but investors are anticipating a total of 100 basis points in rate cuts for the remainder of the year. This would lower the opportunity cost of holding assets that do not yield interest. Additionally, gold’s appeal as a safe-haven asset was enhanced by growing concerns about a potential broader conflict in the Middle East.
Technically the first support level is at 2,500. If this level is breached, the next supports to watch will be 2,470 and 2,430. On the upside, the initial resistance is at 2,532; if this level is surpassed, the next targets will be 2,550 and 2,600.
GBP/USD Rises to 1.3215 as Fed Rate Cut Expectations Weaken Dollar
The GBP/USD pair is trading higher at around 1.3215 in the early Asian session on Monday. This gain is largely due to expectations that the US Federal Reserve will start easing its monetary policy in September, which has weakened the Greenback and lifted GBP/USD. The anticipated Fed rate cuts are continuing to put pressure on the Greenback, benefiting GBP/USD. Rabobank analysts forecast that deteriorating labor market conditions will lead to four consecutive 25 basis point rate cuts in September, November, December, and January. Meanwhile, speculation that the Bank of England (BoE) will adopt a slower pace of policy adjustments compared to other major central banks is lending some support to the Pound Sterling (GBP). BoE Governor Andrew Bailey noted late Friday that, despite inflation remaining a major concern, many pricing pressures have eased more quickly than anticipated. He also stressed that it is premature to declare victory over inflation.
For GBP/USD, the initial support is 1.3180, followed by 1.3130 and 1.3100, respectively. On the upside, the first resistance is at 1.3240, with subsequent levels at 1.3280 and 1.3320 if the pair breaks above this resistance.
Geopolitical Tensions and Fed Rate Cut Expectations Shape Forex and Commodities
Geopolitical tensions in the Middle East and expectations of Federal Reserve rate cuts have significantly influenced market movements. The dollar index stabilized after a recent dip, supported by safe-haven demand, while the EUR/USD and USD/JPY pairs reflected the broader market sentiment. Gold prices declined despite Fed rate cut expectations, with ongoing Middle East tensions offering some support. GBP/USD pulled back after a strong rally, and silver prices remained near recent highs, driven by Fed policy speculation and safe-haven buying.
Dollar Index Stabilizes Amid Geopolitical Tensions and Fed Rate Cut Expectations
The dollar index held steady around 100.9 on Tuesday, recovering from a 13-month low reached in the previous session. This stability was supported by heightened safe-haven demand due to escalating geopolitical tensions in the Middle East, where Israel and Hezbollah exchanged missile strikes over the weekend, raising concerns about a broader conflict that could involve Iran. Despite this, the dollar faces pressure from anticipations that the Federal Reserve may soon begin cutting interest rates. In his Jackson Hole address on Friday, Fed Chair Powell indicated that it’s time to adjust policy due to increasing risks to the labor market, while remaining confident that inflation will eventually meet the Fed’s 2% target. Additionally, Monday’s data showed a stronger rebound in durable goods orders for July. Investors are now awaiting this week’s initial jobless claims and the Fed’s preferred PCE price index report for further insights into the future direction of interest rates.
In the pair, which has been rallying for 2 consecutive weeks, the first support level is at 1.1150. If this level is breached, the next supports to watch will be 1.1100 and 1.1060. On the upside, the first resistance is at 1.1220; if this level is surpassed, the next targets will be 1.1250 and 1.1300.
Gold’s Decline Continues as Fed Officials Hint at Imminent Rate Cuts
Gold prices fell below $2,510 per ounce on Tuesday, despite expectations of imminent US rate cuts and rising geopolitical tensions. Last week, Federal Reserve Chair Jerome Powell indicated a likely interest rate cut in September, signaling the central bank’s readiness to lower rates as inflation nears its 2% target, while also noting concerns about a weakening labor market. On Monday, San Francisco Fed President Mary Daly supported Powell’s dovish view, stating that “the time to adjust policy is upon us.” Similarly, Richmond Fed President Barkin expressed support for reducing interest rates in light of a cooling labor market, despite still seeing potential inflationary risks. Meanwhile, escalating geopolitical risks in the Middle East have driven increased demand for safe-haven assets such as gold.
Technically the first support level is at 2,500. If this level is breached, the next supports to watch will be 2,470 and 2,430. On the upside, the initial resistance is at 2,520; if this level is surpassed, the next targets will be 2,532 and 2,550.
Fed Easing and Economic Data Shape Currency and Commodity Trends
Fed easing expectations and upcoming economic data have been pivotal in recent market movements. The EUR/USD pair remains steady around 1.1165 as speculation about potential Federal Reserve rate cuts continues. The USD/JPY shows strength in the yen amid a weaker dollar and contrasting monetary policies between Japan and the US. Gold prices are steady below $2,520, with investors awaiting further Fed insights. GBP/USD reached a multi-year high at 1.3266, fueled by hopes for Fed rate cuts. Silver prices are stable above $30, with market participants focusing on upcoming economic data and Fed policy signals.
EUR/USD Holds Around 1.1165 Amid Speculation of Fed Easing
The dollar index traded around 100.6 and EUR/USD parity around 1.1165 on Wednesday, approaching DXY’s lowest levels since July 2023 as expectations of Federal Reserve interest rate cuts continued to weigh on the currency. Markets are pricing in about a one-third chance that the Fed will cut rates by 50 basis points in September, with over 100 basis points in total easing projected for this year. These expectations were bolstered by dovish comments from Fed officials, who are highlighting increasing risks to the labor market while maintaining confidence that inflation will eventually return to target. Investors are now awaiting the latest initial jobless claims and the Fed-preferred PCE price index report later this week for further insights into the rate trajectory.
In the pair, which has been trading sideways since the beginning of the week, the first support level is at 1.1150. If this level is breached, the next supports to watch will be 1.1100 and 1.1060. On the upside, the first resistance is at 1.1220; if this level is surpassed, the next targets will be 1.1250 and 1.1300.
GBP/USD Peaks at 1.3266 with Fed Rate Cut in Focus
On Tuesday, GBP/USD reached its highest level in several years, peaking at 1.3266, as the British pound continued to benefit from a broad decline in the US dollar. Investors are optimistic about a potential rate cut from the Federal Reserve in September, while anticipation builds ahead of the US Personal Consumption Expenditure (PCE) inflation report, which is not due until Friday. Last Friday, Fed Chair Jerome Powell’s remarks at the Jackson Hole Economic Symposium strongly suggested that the central bank is likely to begin a rate-cutting cycle on September 18, further fueling market enthusiasm. With limited significant economic data expected from the UK, Wednesday is set to be a relatively quiet day on both sides of the Atlantic. Traders will be watching for a speech from Fed Board of Governors member Christopher Waller early in the US session, and later, a speech from Bank of England (BoE) policymaker Catherine Mann, scheduled after the close of the London markets.
For GBP/USD, the initial support lies at 1.3230, followed by 1.3175 and 1.3130 below. On the upside, the first resistance is at 1.3265, with subsequent levels at 1.3300 and 1.3350 if the pair breaks above this resistance.
Fed Rate Cut Speculation Drives Market Movements in Blustering Ways
Markets are focused on upcoming US economic data as expectations for Federal Reserve rate cuts continue to impact currencies and commodities. The EUR/USD pair trades around 1.1130, with key support and resistance levels highlighted amid anticipation of the Q2 GDP and jobless claims reports. The USD/JPY remains under pressure near 144.50, influenced by dovish Fed signals and potential BoJ rate hikes. Gold has climbed above $2,510, bolstered by rate cut expectations and rising Chinese imports, while GBP/USD has dropped below 1.3200, reflecting fading bullish momentum. Silver is trading around $29.40, pressured by a stronger dollar, with market attention on forthcoming economic data to gauge the Fed’s rate cut decision.
EUR/USD Trades at 1.1130 as Markets Eye US GDP and Jobless Claims Data
On Thursday, the dollar index traded near 101 after gaining 0.5% in the previous session and the EUR/USD pair trades at 1.1130. Investors are awaiting key US economic data to assess the Federal Reserve’s monetary policy direction. Today’s releases include the second estimate for Q2 GDP and the latest initial jobless claims, with the Fed’s preferred inflation measure, the PCE price index, due on Friday. Despite this, the dollar index remained close to its lowest levels in 13 months, as expectations mount for the Fed to begin interest rate cuts in September. Fed officials have hinted at imminent rate reductions due to easing inflation and growing labor market concerns, with Fed Chair Jerome Powell stating at Jackson Hole last week that it’s time to adjust policy restrictiveness. Markets are forecasting around 100 basis points in total rate cuts for the year.
In the pair, which has been trading sideways since the beginning of the week, the first support level is at 1.1100. If this level is breached, the next supports to watch will be 1.1060 and 1.1000. On the upside, the first resistance is at 1.1150; if this level is surpassed, the next targets will be 1.1200 and 1.1250.
Gold Climbs as Fed Rate Cut Expected and Chinese Imports Rise
On Thursday, gold climbed above $2,510 per ounce, nearing record highs as expectations of Federal Reserve interest rate cuts continued to encourage the metal. Investors are awaiting further details on the scale of these cuts. Later today, the second estimate for Q2 GDP and the latest initial jobless claims will be released, with the PCE price index report, the Fed’s preferred inflation gauge, due on Friday. According to the CME FedWatch Tool, traders are pricing in a 63.5% chance of a 25 basis point cut and a 36.5% chance of a 50 basis point reduction for the anticipated September rate cut. Markets are also anticipating a total of 100 basis points in rate cuts for the remainder of the year, which would lower the opportunity cost of holding non-interest-bearing assets. Additionally, official data showed that China’s net gold imports via Hong Kong rose by 17% in July, marking the first increase since March.
Technically the first support level is at 2,510. If this level is breached, the next supports to watch will be 2,495 and 2,470. On the upside, the initial resistance is at 2,525; if this level is surpassed, the next targets will be 2,550 and 2,585.
