Gold rebounds from 4-week low
Gold regained its momentum on Thursday morning, rising to the highest levels of 3,290 dollars per ounce, after falling by more than 1% in the previous session to reach its lowest levels in four weeks.
This recovery comes as investors assess recent trade developments and Fed statements that shape market trends.
The impact of trade policies on markets
Former US President Donald Trump announced a series of new customs measures, including:
- Elimination of exemptions for low-value imports.
- Review the duties on imports of copper and goods coming from Brazil.
- The threat of 50% tariffs on Brazil and some copper derivatives, while refusing to extend the suspension of reciprocal duties with trading partners.
- Imposing duties of 15% on South Korean products and 25% on Indian goods, with reference to the continuation of negotiations with India.
- He also commented on Canada's plans to recognize a Palestinian state, calling it an obstacle to any future trade agreement.
Fed keeps interest rates and forecasts vague
As expected, the Fed kept interest rates unchanged, but the subsequent statements of its Chairman Jerome Powell confused the markets:
He stressed that talking about a rate cut is still premature, without providing guarantees for a move in September.
In response, the markets lowered their forecasts by a maximum of 35 basis points by the end of 2024.
Gold reacted to these statements with declines and then rises again, but it may face pressure with Powell questioning the feasibility of close cuts.
Stronger than expected economic
data Fears of the Fed postponing monetary easing policy escalated after the release of positive indicators, including:
- US GDP growth is higher than expected.
- High employment rates in the private sector.
Upcoming determinants: inflation and the labor market
Investors are now turning their attention to:
- Personal consumption expenditures (PCE) inflation and unemployment claims data on Thursday.
- The US jobs report for July to be released on Friday, which may determine the course of gold and markets in the coming weeks.
