PT Solid Gold Berjangka | Gold Retreats as Dollar, Yields Firm Ahead of Fed Verdict
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | After reaching an all-time high in the previous session, traders adjusted their positions in preparation for a possible interest rate cut decision by the Federal Reserve this week as the dollar strengthened and government bond yields remained steady.
Spot gold fell 0.5% to $2,569.43 after hitting an all-time high of $2,589.59 on Monday.
U.S. gold futures were down 0.6% at $2,592.40.
Financial markets are focused on the two-day Fed policy meeting ending Wednesday, where the likelihood of a 50 basis point cut now stands at 63%, compared to 34% a week ago, according to CME’s FedWatch tool.
Financial markets are factoring in a greater likelihood of the Fed moving more aggressively. This would be the Fed’s first rate cut since 2020.
Goldman Sachs said Monday that it sees tactical downside in gold prices under economists’ base case for a 25 bps rate cut by the Fed on Wednesday, reiterating its long gold trading recommendation and price target of $2,700/oz. by early 2025 The company said that it sees tactical downside in the gold price.
Lower interest rates will reduce the opportunity cost of holding lower yielding gold bullion.
Source Reuters