The Federal Reserve favors inflation indicators as the announcement is imminent, and gold prices have risen for four consecutive weeks, approaching historical highs
Gold prices have risen for the fourth consecutive week, approaching historical highs, with spot gold priced at approximately $3,415 per ounce. Investors are focused on the upcoming inflation data, which may influence the Federal Reserve's monetary policy. The market anticipates an 85% chance of a rate cut next month. Trump's tariff policy and concerns over the independence of the Federal Reserve have also driven up gold prices
According to Zhitong Finance APP, gold prices have risen for the fourth consecutive week, approaching historical highs. Meanwhile, investors are closely monitoring the upcoming inflation data, as this data may play a key role in this year's monetary easing policy in the United States.
During the Asian session on Friday, gold prices remained stable at around $3,415 per ounce. This follows Thursday's data showing that the growth rate of the U.S. economy exceeded expectations. These data raised concerns about inflation, and Friday's U.S. personal consumption data is expected to show accelerated growth. This could limit the Federal Reserve's ability to cut interest rates—such a situation is generally unfavorable for gold, as gold itself does not pay interest.
Traders are also closely examining the remarks made by Federal Reserve Governor Christopher Waller on Thursday. Waller, a strong contender to succeed Jerome Powell as Fed Chair next year, stated that he would support a 25 basis point rate cut in September and expects further cuts in the next three to six months.
The swap market anticipates about an 85% chance of a rate cut next month, but there is significant uncertainty regarding inflation and the future development of the U.S. labor market after September, as the impact of Trump's tariff policies on the economy continues to manifest.
Concerns about the independence of the Federal Reserve being threatened have also driven up gold prices. Earlier this week, Trump took action to attempt to dismiss Fed Governor Lisa Cook.
Since the beginning of this week, gold prices have risen by 1.3%, gradually approaching the historical high of about $3,500 per ounce in April. Frictions in trade and geopolitics, inflows into exchange-traded funds, and major central banks' efforts to reduce reliance on the dollar have also supported gold's status as a safe-haven asset.
As of the time of writing, the spot gold price remains at $3,415.73 per ounce, up 0.6% compared to Thursday. The Bloomberg Dollar Spot Index is flat, having fallen 0.3% in the previous trading day. Silver prices remain stable, while platinum and palladium prices have slightly declined
