August 16, 2024 (Investorideas.com Newswire) Gold touched $2,500 an oz. for the primary time in historical past in spot buying and selling, whereas COMEX futures reached $2,538.
Gold’s beneficial properties right this moment come as extra weak spot within the US financial system comes as constructing permits hit a greater than year-low and housing begins fell to a four-year low.
Whereas weaker-than-expected housing market numbers, together with a slew of information this week, could enhance hopes for extra fee cuts this yr, particularly in September, they haven’t revived the case for a 50-bps minimize on the subsequent assembly. In different phrases, an emergency fee minimize to avoid wasting the financial system is unlikely after markets appear to have overpriced it. Regardless of that, gold continued its historic beneficial properties.
The chance of a 25-basis level minimize in September is 76.5% in comparison with 23.5% for a 50-basis level minimize, in keeping with the CME FedWatch Instrument.
In distinction to the prevailing negativity in regards to the well being of the US financial system, we noticed a higher-than-expected enhance in client confidence right this moment, in keeping with the College of Michigan’s survey for August. This sentiment was pushed by optimism about private monetary and financial outlook, in keeping with the survey. This will likely assist calm fears in regards to the US financial system falling into recession, as improved sentiment may result in help for spending.
Gold could possibly maintain its beneficial properties with out important progress within the ceasefire negotiations in Gaza, as they might finally result in defusing a wider regional struggle. Nevertheless, whereas yesterday’s negotiations in Qatar didn’t end in a breakthrough, “some gaps have been narrowed,” in keeping with US Nationwide Safety Council spokesman John Kirby. In the meantime, Israeli Prime Minister Benjamin Netanyahu caught to his demand that his forces stay within the Philadelphi hall, in keeping with The Washington Submit. The main target stays on the outcomes of right this moment’s negotiations.
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