Gold Prices Dip $300 Amid Rate Cut Expectations,Geopolitical Tensions
Gold prices closed lower today,decreasing by 300 baht from the previous day,as investors weighed expectations of potential interest rate cuts by the U.S. Federal Reserve against ongoing global uncertainties. The shift comes after the united States reported sluggish employment numbers, bolstering predictions – now at 90% among investors – that the Fed will reduce interest rates this month, a figure increased from prior expectations of two cuts this year to three.
These anticipated rate reductions are considered a key factor driving gold prices,traditionally a safe-haven asset. Further fueling investor interest in gold are escalating geopolitical tensions, including the conflict in Ukraine and the ongoing situation in the Middle East. Ukraine has announced retaliatory attacks into Russian territory following a Russian drone attack on Ukrainian power plants, leaving approximately 60,000 households without electricity. Together, the conflict between Israel and Hamas continues, with Israel deploying tanks into gaza and the Huthee group targeting oil carriers linked to Israel in the Red Sea.Despite these factors, analysts suggest potential for profit-taking after a period of sustained gains in gold prices, coupled with the weaker-then-expected U.S. economic data. The projected trading range for gold this week is $3,545 – $3,650 per ounce, with a recommendation to buy during price dips.
