Gold is near a 5-week high, but today it is retreating to take profits

Gold prices stabilized above the levels of 3,400 dollars per ounce on Friday, despite the declines during the Asian trading period today as a profit-taking and correction of this strong rise, especially since we are trading on the last days of the month, but it is still trading near its highest level in more than a month, and on its way to making gains for the second week in a row, gold is also heading for its best monthly performance since April.

Supported by the decline of the US dollar and the demand for safe haven.

Expectations of the monetary policy of the Federal Reserve

Behind this strength are growing fears that political pressures may push the Federal Reserve (the US central bank) to accelerate the pace of interest rate cuts. Currently, market expectations are largely directed to a 25 basis point cut at the upcoming September meeting.

These expectations were increased by the speech of a member of the board of Governors, Christopher Waller, who announced his support for the start of interest rate cuts next month, saying that he fully expects further subsequent cuts to make monetary policy more neutral, in full harmony with the position of his colleagues in the board.

Focus on US inflation data

Investors are also closely watching the release of the personal consumption expenditures (PCE) index, the Fed's preferred measure of inflation, due this afternoon.

The importance of this report comes after adjusted data showed the fastest growth of the US economy in the second quarter, raising fears of continued inflationary pressures.

Any acceleration in the pace of inflation could reshape monetary policy expectations and affect future gold trends.

In short, gold continues to maintain its luster as a safe haven, its movements intersect at the crossroads between expectations of a US interest rate cut and upcoming macroeconomic indicators.