Gold Price Poised for Continued Gains Amid Expected US Inflation Data

Gold Prices Approach Record Heights

Comex Gold futures slipped by 0.25% to $2,553.80 per troy ounce on Friday, remaining near the record high of $2,570.40 set on August 20. The precious metal's ascent has been fueled by growing optimism concerning interest-rate cuts by the US Federal Reserve, following dovish remarks from Chair Jerome Powell at the August Jackson Hole Economic Symposium.

Anticipation of US Inflation Data

With traders waiting for important US inflation data for further direction, gold is poised for a second consecutive monthly gain as expectations of a Federal Reserve rate cut next month grow stronger. Analysts assert that investors are closely monitoring US inflation data to gauge the magnitude of the upcoming rate cut.

• The PCE price index is in focus for market trends.
• Gold's safe-haven appeal remains heightened amid economic uncertainties.
• Current geopolitical tensions enhance the attraction of gold.

Gold Outlook

Traders are factoring in a potential rate decrease in the US, with a 66% likelihood of a 25 basis point cut and a 34% probability for a 50 basis point drop, according to analysts.

The recent data suggests that economic conditions are conducive to gold’s upward momentum, although the core PCE Price Index could influence the Fed's decisions. Expectations surrounding the core PCE remain crucial, with a consensus for a 0.2% MoM and a higher 2.7%% YoY from 2.6%% in June.

As we navigate these pivotal moments, the gold market remains a key point of interest for investors.