Gold experienced a slight increase to approximately $3,650 per ounce on Friday, but largely maintained its losses from the previous two days. This pause comes after a four-week rally. Market participants are still interpreting the Federal Reserve’s recent decision to lower its benchmark rate, the first such move since December, along with the central bank’s forward guidance.
- Gold edged up to around $3,650 per ounce on Friday.
- Gold held most of its two-day decline.
- Gold is on track to pause a four-week rally.
- The Federal Reserve eased its benchmark rate for the first time since December.
- Policymakers cautioned that persistent inflation could slow future rate cuts.
- Chair Jerome Powell framed the move as a measured response to a cooling labor market.
- Gold has risen roughly 39% so far this year.
- Gold repeatedly hitting record highs amid expectations of Fed easing, ongoing geopolitical tensions, and strong central bank demand.
- Swiss gold exports to China surged 254% in August compared with July.
The asset’s recent performance reflects a complex interplay of factors. While expectations of looser monetary policy and geopolitical uncertainty have generally supported its price, concerns about inflation and the pace of future interest rate cuts are creating headwinds. Furthermore, shifts in international demand, particularly from major consumers like China, can exert significant influence. Overall, the asset’s trajectory appears contingent on both macroeconomic developments and global demand dynamics.