Gold Hovers Near Peak as Markets Anticipate Fed's Next Move

27 August 2024

Gold prices are consolidating near record highs as investors await clarity on potential U.S. interest rate cuts ahead of a key inflation report. Analysts expect gold to remain strong, with predictions of reaching $2,700 per ounce by year-end if the Federal Reserve implements significant rate cuts. The market is pricing in a high probability of a rate cut in September, with the size of the cut influencing gold’s future performance. Geopolitical tensions in the Middle East continue to support gold prices, which have risen about 22% this year.

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