Gold holds steady amid market jitters and fading rate-cut hopes
Highlights:
Gold held near US$4,070 an ounce at the time of writing as investors reacted to falling global equities and concerns over stretched tech valuations.
Expectations of a US interest-rate cut have weakened after recent Federal Reserve comments, putting short-term pressure on bullion.
Despite volatility, gold is still up about 55% this year, supported by strong central-bank buying and hedging against economic uncertainty.
Safe haven under pressure
Gold prices hovered around US$4,070 an ounce at the time of writing, after a 0.6 per cent gain in the previous session, as investors digested a drop in global equities, concerns over high valuations in technology stocks and diminishing odds of a near-term interest-rate cut in the United States.
What’s driving the shift?
The upcoming earnings report from Nvidia Corporation — a bell-wether for artificial intelligence-linked stocks — is adding to the unease in risk markets. At the same time, remarks by multiple policymakers at the Federal Reserve have dampened expectations of a rate cut, a development that normally boosts non-yielding assets like gold.
Looking beyond the immediate outlook
Despite these near-term headwinds, gold remains on track for a remarkably strong run this year, supported by central-bank buying and broader strategic hedging. Some analysts say the metal’s longer-term uptrend remains intact even as it weathers short-term turbulence.
What investors should watch
Next up: the delayed U.S. jobs report and other data releases that could influence the Fed’s policy path and thus affect gold’s trajectory. Also, any resurgence in equity market volatility would likely push safe-haven demand higher again.
In short: At the time of writing, gold is holding onto gains amid a backdrop of equity-market caution and
simmering policy uncertainty. Traders and investors alike will be closely following incoming data and central-bank signals to gauge the next move for the precious metal.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Gold holds steady amid market jitters and fading rate-cut hopes
Highlights:
Gold held near US$4,070 an ounce at the time of writing as investors reacted to falling global equities and concerns over stretched tech valuations.
Safe haven under pressure
Gold prices hovered around US$4,070 an ounce at the time of writing, after a 0.6 per cent gain in the previous session, as investors digested a drop in global equities, concerns over high valuations in technology stocks and diminishing odds of a near-term interest-rate cut in the United States.
What’s driving the shift?
The upcoming earnings report from Nvidia Corporation — a bell-wether for artificial intelligence-linked stocks — is adding to the unease in risk markets. At the same time, remarks by multiple policymakers at the Federal Reserve have dampened expectations of a rate cut, a development that normally boosts non-yielding assets like gold.
Looking beyond the immediate outlook
Despite these near-term headwinds, gold remains on track for a remarkably strong run this year, supported by central-bank buying and broader strategic hedging. Some analysts say the metal’s longer-term uptrend remains intact even as it weathers short-term turbulence.
What investors should watch
Next up: the delayed U.S. jobs report and other data releases that could influence the Fed’s policy path and thus affect gold’s trajectory. Also, any resurgence in equity market volatility would likely push safe-haven demand higher again.
In short: At the time of writing, gold is holding onto gains amid a backdrop of equity-market caution and
simmering policy uncertainty. Traders and investors alike will be closely following incoming data and central-bank signals to gauge the next move for the precious metal.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au