Bullion Takes a Breather: But Gold Stays Above $2,500

28 August 2024

The price of gold retreated from recent record highs as the dollar strengthened, with investors awaiting key U.S. inflation data that could influence the Federal Reserve’s interest rate decisions. The precious metal’s price dipped by about 1%, trading near $2,500 per ounce, as traders took profits and rebalanced portfolios. Despite this setback, gold remains up over 20% this year, supported by rate cut expectations, central bank purchases, and geopolitical uncertainties. Market participants are now focused on Friday’s inflation report, which could provide insights into the pace of potential rate cuts.

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