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GOLD: Fresh All-Time High After Fed Waller’s Dovish Remarks

GOLD
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Gold is 0.3% higher at a new all-time high of $2631.13 in today’s Asia-Pac session, after closing 1.4% higher on Friday.

  • Friday’s move was aided by dovish comments from the Fed’s Waller. Governor Waller expressed concern with inflation undershooting, not overshooting, noting firms' limited pricing power and wage inflation coming down, and that inflation is potentially on a lower path than had previously been expected.
  • However, Fed Governor Bowman (voter) issued a statement explaining why she dissented against the FOMC’s decision to cut the Fed Funds target range by 50bps last Wednesday.
  • Projected rate cuts into early 2025 bounced off early session lows, latest vs. late Thursday levels (*) as follows: Nov'24 cumulative -37.8bp (-35.9bp), Dec'24 -75.0bp (-72.4bp), Jan'25 -108.5bp (-106.5bp).
  • Looking ahead to today’s US calendar we see more Fed speak from Bostic, Goolsbee and Kashkari, alongside data including flash PMI data from S&P Global.
  • From a technical perspective, having pierced initial resistance at $2,613.3 on Friday, the next resistance is seen at $2,642.7, the 2.236 projection of the Jul 25 - Aug 2 - Aug 5 price swing.
  • Analysts at Quantix Commodities say that although a near-term pull-back in prices is possible, given extreme positioning, the beginning of a Fed easing cycle will undoubtedly be bullish for gold.
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Gold is 0.3% higher at a new all-time high of $2631.13 in today’s Asia-Pac session, after closing 1.4% higher on Friday.

  • Friday’s move was aided by dovish comments from the Fed’s Waller. Governor Waller expressed concern with inflation undershooting, not overshooting, noting firms' limited pricing power and wage inflation coming down, and that inflation is potentially on a lower path than had previously been expected.
  • However, Fed Governor Bowman (voter) issued a statement explaining why she dissented against the FOMC’s decision to cut the Fed Funds target range by 50bps last Wednesday.
  • Projected rate cuts into early 2025 bounced off early session lows, latest vs. late Thursday levels (*) as follows: Nov'24 cumulative -37.8bp (-35.9bp), Dec'24 -75.0bp (-72.4bp), Jan'25 -108.5bp (-106.5bp).
  • Looking ahead to today’s US calendar we see more Fed speak from Bostic, Goolsbee and Kashkari, alongside data including flash PMI data from S&P Global.
  • From a technical perspective, having pierced initial resistance at $2,613.3 on Friday, the next resistance is seen at $2,642.7, the 2.236 projection of the Jul 25 - Aug 2 - Aug 5 price swing.
  • Analysts at Quantix Commodities say that although a near-term pull-back in prices is possible, given extreme positioning, the beginning of a Fed easing cycle will undoubtedly be bullish for gold.