Gold Falls Below $1,500, Holding Steady
Arslan Butt • 1 min read
During the previous trading day, gold prices fell 1.2% lower to touch $1,495, the sharpest fall since July 19. A rally on Wall Street and other equity markets turned the market sentiment from risk-off to risk-on, causing investors to pull money out of safe haven assets like gold and back towards stock markets.
The market sentiment has improved following the rise in bond yields across the globe, putting aside worries of a possible recession in the economy. However, gold traders will be focusing on the FOMC meeting minutes due to release on Wednesday.
In addition, the Fed’s Jackson Hole Symposium and Group of Seven summit over the weekend will also remain in focus for clues on any additional rate cuts by the US central bank. Presently, markets are anticipating an 86% likelihood of the Fed announcing a 0.25% cut in interest rates in September. A rate cut will weaken the dollar and push gold back in demand.