Gold Set For Record-Breaking Month As Inflation And Fed Policies Anticipation Drive Prices

(MENAFN- Investor Ideas) Gold futures are trading near record highs and are set for a second consecutive month of gains, fueled by expectations of a Federal Reserve rate cut next month. The market anticipates further volatility as attention shifts to the PCE price index, the Fed's preferred inflation metric, which could offer additional insights into U.S. inflation and influence the Fed's upcoming decision. A lower-than-expected inflation reading could support gold, potentially driving the precious metal prices to new highs. Additionally, ongoing geopolitical risks and robust demand from China continue to support gold.

Recent data revealed a slight decrease in U.S. weekly jobless claims, which could play in favor of gold. However, the U.S. GDP growth for the second quarter was revised up to 3.0%, indicating a stable economy. This revision has supported the U.S. dollar and treasury yields, slightly capping gold's potential for further gains.

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