{"id":2741,"date":"2024-07-27T04:45:07","date_gmt":"2024-07-27T04:45:07","guid":{"rendered":"https:\/\/prendergast.net\/?p=2741"},"modified":"2024-07-27T04:45:07","modified_gmt":"2024-07-27T04:45:07","slug":"gold-surges-as-cooling-inflation-raises-hopes-for-september-rate-cut","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=2741","title":{"rendered":"Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut"},"content":{"rendered":"
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Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut<\/span><\/span><\/span><\/span><\/strong><\/strong><\/span><\/h1>\n

The latest economic data has sparked renewed optimism in the gold market, with prices climbing over $20 as investors digested signs of cooling inflation and robust economic growth. This positive sentiment comes as the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, shows continued <\/span><\/span><\/span><\/span><\/p>\n

progress in the battle against rising prices.<\/span><\/span><\/span><\/span><\/p>\n

According to the Bureau of Economic Analysis, headline inflation declined to 2.5% annually last month, down from May's 2.6%. The core PCE, which excludes volatile food and energy costs, held steady at 2.6%, slightly above Wall Street's forecast of 2.5%. This data suggests that the Fed's restrictive monetary policy is yielding results, bringing inflation closer to its 2% target.<\/span><\/span><\/span><\/span><\/p>\n

Adding to the positive economic outlook, the advance estimate of second-quarter GDP surpassed expectations, coming in at a robust 2.8% annualized growth rate. This figure, well above the predicted 2%, demonstrates the economy's resilience despite interest rates reaching a 23-year high.<\/span><\/span><\/span><\/span><\/p>\n

These encouraging reports have fueled speculation about the Fed's next moves. While the probability of a rate cut at next week's FOMC meeting remains low at 4.7%, market sentiment has shifted dramatically for the September meeting. The CME's FedWatch tool now predicts a 100% likelihood of a rate cut in September, with an 87.7% <\/span><\/span><\/span><\/span><\/p>\n

probability of a quarter-point reduction.<\/span><\/span><\/span><\/span><\/p>\n

This optimism has translated into significant gains across financial markets. The Dow, S&P 500, and NASDAQ composite indices all rose over 1%. Gold futures basis the most active August contract jumped 0.96% to settle at $2,386. The precious metal's price has now surpassed its 50-day simple moving average, with technical analysis <\/span><\/span><\/span><\/span><\/p>\n

suggesting price support at $2,350. <\/span><\/span><\/span><\/span><\/p>\n

\"\"<\/span><\/span><\/span><\/span><\/p>\n

As the Fed navigates the delicate balance between taming inflation and supporting economic growth, investors are closely watching for signs of a pivot toward interest rate normalization. The central bank's actions in the coming months could have far-reaching implications for gold prices and the broader financial landscape. <\/span><\/span><\/span><\/span><\/p>\n

With inflation cooling and economic indicators showing strength, the stage is set for potentially significant market movements.<\/span><\/span><\/span><\/span><\/p>\n

Kitco Media<\/span><\/span><\/span><\/span><\/p>\n

Gary Wagner<\/span><\/span><\/span><\/span><\/p>\n

Time to Buy Gold and Silver<\/a><\/u><\/span><\/span><\/span><\/p>\n

<\/p>\n

Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut The latest economic data has sparked renewed optimism in the gold market, with prices climbing over $20 as investors digested signs of cooling inflation and robust economic growth. This positive sentiment comes as the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) … Continue reading Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[291],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/2741"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2741"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/2741\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}