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Gold Holds Steady as Interest Rates Continue to Hang in the Balance

Gold Holds Steady as Interest Rates Continue to Hang in the Balance

July 01, 2024643 view(s)

Gold prices continue to show stability, standing at $2,339 an ounce this Monday morning, a slight increase from $2,336 an ounce last Monday. Since the April 13th, 2024, Iranian missile attack on Israel, the price floor resistance has been steadfastly maintained around  $2,300 an ounce, presenting a consistent investment opportunity for gold market bulls. 


Last week, the PCE (Personal Consumption Expenditures) inflation report, which measures how much U.S. households spend on goods and services, reported a figure of 2.6%, aligning perfectly with expectations. This was a reassuring development for the Federal Reserve Board, especially after the 2.8% figure in April. Before this report, Federal Reserve Governor Michelle Bowman had made a hawkish comment, stating, "I remain willing to Raise Interest Rates" if progress on inflation stalls.


Gold Prices React to Economic Indicators Amid Fed Speculation


While these events are not expected to have a significant impact, it's important to be aware of the potential market-moving events for the week. These include: 

- Construction Spending​ (Monday)

- June Auto Sales and May Job Openings​ (Tuesday)

- Federal Reserve Chairman Jerome Powell's Speech in Portugal​ (Tuesday)

- June ADP, Jobless Claims, June FOMC Minutes​ (Wednesday)

- June Jobs Report​ (Friday)


From these events, it will be interesting to see if the discussions from the FOMC meeting will influence the decision to keep interest rates high, as Michelle Bowman indicated last week. We will also hear from Jerome Powell and see if he makes any new commentary on the "as expected" PCE inflation report after several months of alarming surprises indicating persistent and increasing inflation.


Gold boasts a rich 5,000-year history as a valuable commodity. It has transcended every civilization and monetary currency, a testament to its enduring value and likely continued relevance.


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