BENGALURU: Gold eased on Monday after piercing the $2,500 ceiling in the previous session, as investors booked profits from the record run and positioned for more cues from the Federal Reserve and developments in the Middle East.
Spot gold was down 0.2% at $2,503.50 per ounce as of 11:57 a.m. ET (1557 GMT), shy of the record high of $2,509.65 hit on Friday. US gold futures rose 0.2% to $2,542.10. “We will not be surprised to see some consolidation/pull-back in the gold market as traders may be disappointed if the Fed only indicates a likelihood of a 0.25 bp rate cut and does not hint at the possibility of a larger 0.50 bp cut,” David Meger, director of alternative investments and trading at High Ridge Futures, said.
Traders see a 77.5% chance of the Fed cutting interest rates by 25 basis points (bps) in September, according to the CME FedWatch Tool. The focus will turn to minutes from the Fed’s last policy meeting on Wednesday and Chair Jerome Powell’s speech at an economic symposium in Jackson Hole on Friday.
Gold may fall into the $2,479-$2,487 range following its failure to break resistance at $2,507, according to Reuters technical analyst Wang Tao.
Source: Brecorder
