Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

Gold Prices Stabilize Above $2,500 Amid Market Uncertainty

image
icon 29/08/24
icon 59

Gold Prices Stabilize Above $2,500 Amid Market Uncertainty

Gold prices showed signs of early recovery on Thursday, maintaining stability within a familiar trading range. The precious metal regained the $2,500 level, driven primarily by broad market risk aversion. This shift in investor sentiment comes as attention turns toward upcoming economic indicators, including the second estimate of the U.S. Gross Domestic Product (GDP) and Pending Home Sales data slated for release later in the day.

Market conditions are influenced by a mix of factors, notably a disappointing earnings report from Nvidia and recent hawkish commentary from the Atlanta Federal Reserve. Despite reporting a substantial revenue growth of 122% and announcing a $50 billion buyback, Nvidia shares experienced a 7% decline in after-hours trading. Investors reacted negatively to the company’s lower-than-expected sales forecasts for the upcoming quarter, which were projected at $32.5 billion, compared to market expectations of $37.9 billion. Additionally, Nvidia’s gross margins decreased, which further dampened investor enthusiasm.

In commentary from the Atlanta Fed, the Fed President highlighted that inflation is decreasing at a faster rate than anticipated and suggested that this might necessitate a reconsideration of interest rate cuts sooner than previously expected. Current market assessments indicate a 35% probability of a 50 basis point rate cut in September, with a higher likelihood for a 25 basis point cut.

The hawkish stance from the Fed has not adversely affected gold pricing, aided by a decline in the U.S. dollar and Treasury bond yields. The anticipated second estimate of the annualized GDP is expected to remain steady at 2.8% for the second quarter.

From a technical perspective, gold’s short-term outlook remains optimistic, with support established around $2,469. A strong push beyond $2,500 is crucial for buyers to secure the record high of $2,532 and potentially challenge psychological levels like $2,600. Conversely, if prices fall below $2,500, the focus will shift to $2,485 and the established support level at $2,469.

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 272
May 15, 2024
icon 272
prev next
This site is registered on wpml.org as a development site.