Forecast for Gold Prices: XAU/USD stays over $2,500 due to ongoing geopolitical concerns and expectations of Fed rate reductions
Forecast for Gold Prices: XAU/USD stays over $2,500 due to ongoing geopolitical concerns and expectations of Fed rate reductions In anticipation of the US Federal Reserve (Fed) rate reduction in September, the gold price (XAU/USD) increased in value during Monday's early Asian session. The Fed Chair Jerome Powell's speech this week and the first reading of the US S&P Global Purchasing Managers Index (PMI) will be more important indicators for gold dealers. On Friday, the price of precious metal reached a record high as more traders gambled on the US Federal Reserve's September interest rate decreases. Although US Retail Sales exceeded forecasts, the US Producer and Consumer Price Indexes suggested that inflation was abating last week. Furthermore, from a 1.1% gain in June to 1.238 million units in July—the lowest level since 2020—the US Housing Starts decreased by 6.8%. This number increased doubts about the economy's health, par...