Spot gold prices stood at $3,641.55 per ounce at the time of writing, while U.S. gold futures edged lower to $3,679.00 per ounce.
Gold prices held ground on Monday ahead of the crucial policymaker’s meeting of the Federal Reserve later this week, with the U.S. central bank widely expected to cut interest rates.
Spot gold prices stood at $3,641.55 per ounce at the time of writing, while U.S. gold futures edged lower to $3,679.00 per ounce. Retail sentiment on Stocktwits about the SPDR Gold Shares ETF was in the ‘neutral’ territory at the time of writing.
Bullion gained 1.6% last week, as investors grew optimistic about an interest rate cut by the Federal Reserve after the U.S. labor market showed signs of weakness.
“The bullish outlook remains in place; however, a period of consolidation or a minor pullback would arguably be a healthy outcome that supports gold’s ambitions for hitting loftier price targets down the road,” KCM Trade Chief Market Analyst Tim Waterer said, according to a Reuters News report.
The CME Group’s FedWatch tool, which is constructed based on expectations of futures traders, sees a 96% probability of the Jerome Powell-headed Federal Open Market Committee cutting interest rates by 25 basis points. Several analysts have also projected two more cuts of similar levels by the end of the year.
Bullion, a non-yielding asset, tends to thrive in a low-interest-rate environment.
According to a Bloomberg News report, U.S. President Donald Trump projected a “big cut” from the Federal Reserve before adding that the conditions are “perfect for cutting.”
Trump has repeatedly attacked Powell and other policymakers for their hawkish stances. In previous meetings, the U.S. central bank had taken a cautious approach to factor in the impact of the tariffs imposed by Trump on all trading partners.
According to a report by ING commodities analysts, speculators have reduced their net long positions in COMEX gold by 2,445 lots after reporting gains for two straight weeks to 166,417 lots over the reporting week.
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