Gold price continues to hover near all-time highs amid Fed expectations

On September 22, gold prices remained near record highs. Key inflation data will be released this week, and investors are also focused on speeches by US Federal Reserve officials expected in the coming days. This was reported by Reuters, writes UNN.

Details

The Fed's decision last week to cut the benchmark rate by 25 basis points and signal a possible further easing of policy supported interest in the precious metal.

On the morning of September 22, the spot price rose by 0.2% to $3,691.53 per ounce, while December futures rose by 0.6% to $3,727.40. Earlier, on September 17, the value of bullion reached an all-time high of $3,707.40.

Gold has returned to the $3,700 threshold, and new highs could be reached this week if US macroeconomic data continues to support the Fed's dovish narrative.

The market is paying particular attention to the release of the US core personal consumption expenditures (PCE) index, which is considered the main inflation indicator for the Fed.

The combination of a dovish Fed policy and continuous central bank purchases supports the momentum on the gold side.

This week, a series of speeches by at least ten Fed officials is expected, including Fed Chairman Jerome Powell, who will speak on Tuesday. His comments may clarify the central bank's position on further steps in monetary policy, especially given the risks associated with inflation.

Recall

Despite the previous increase in the value of monetary gold as a method of saving money, its popularity as a jewelry metal has significantly decreased. As noted in a comment for UNN by financial expert Olena Sosedka, this was most reflected in key markets - India and China.

Gold prices in the global market have become so high that it has reduced the popularity of buying gold jewelry. This was most reflected in such key markets as India and China, but the global decline in demand is felt all over the world. Due to rising prices, former fans of gold jewelry are increasingly preferring other precious metals. Instead, gold is more often considered as a way to preserve capital in conditions of economic instability and high inflation. And not as an item of everyday use.

In addition, analysts at Goldman Sachs, one of the largest and most influential investment banks in the world, predict that if the dollar continues to fall, the value of gold will reach $3,700 per troy ounce by the end of 2025.

On September 16, gold prices again broke an all-time high – $3689.27 per ounce.