Gold Prices Dip Below $2500 as Markets Await Powell's Speech to Seek Clues on Fed Rate Cuts
GOLD PRICES fell and broke below $2500 on Thursday after minutes from the Federal Reserve's latest meeting indicated a likely rate cut in September. Meanwhile, the US dollar slightly recovered from its year-to-date lows, while 10-year Treasury yields rose from three-week lows ahead of Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday, writes Atsuko Whitehouse at BullionVault.
The minutes published on Wednesday from the Federal Reserve’s July meeting revealed that, although the interest rate was unanimously held at a 23-year high of 5.25% to 5.50% for the seventh consecutive meeting, a ‘vast majority' of Federal Reserve officials believed that 'it would likely be appropriate to ease policy at the next meeting' if economic data met expectations.
Data published by Labor Department on Wednesday showed that the US economy created 818,000 fewer jobs than originally reported in the 12-month period through March 2024, the biggest downward revision of jobs since 2009.