Gold settles near two-week high
Gold maintained its trading near the two-week high, despite a slight decline on Wednesday to the level of 3,375 dollars per ounce, supported by the rise of gold futures and expectations of a shift in the monetary policy of the Federal Reserve towards easing.
Gold receives support from weak economic data
Expectations of an interest rate cut were strengthened after US data showed a slowdown in growth, as the ISM Services Index fell in July contrary to expectations, as employment declined and inflation pressures rose.
Last week's data also revealed weakness in the labor market and consumer spending, which reinforced fears of a slowdown in the US economy.
In light of these indicators, market expectations for an interest rate cut in September rose to 90%, which supported the demand for gold as a safe asset that does not generate returns, especially with the decline in government bond yields.
Additional factors supporting the yellow metal
Along with monetary factors, gold found support from recent trade measures, including tariffs imposed by US President Donald Trump, as well as renewed concerns about the independence of the Federal Reserve, which increased the attractiveness of gold as a safe haven in times of uncertainty.
