FX.co ★ Gold Extends Rise After Powell Remarks

Gold prices increased to $3,375 per ounce, maintaining a consistent range after repeatedly approaching the historic high of $3,500 in April. This movement follows indicators of a potential shift to a more dovish stance by the Federal Reserve and continued strong demand for safe-haven assets. Federal Reserve Chairman Jerome Powell highlighted that the central bank is witnessing a change in the risk landscape, now weighing a cooling labor market against ongoing inflation threats. This observation follows revisions to payroll figures and higher unemployment, potentially justifying a modification in monetary policy, most likely a 25 basis point interest rate cut in the upcoming September meeting. Furthermore, investor sentiment has resulted in increased expectations for a total of three rate cuts this year, bolstering the appeal of non-yielding precious metals. On the geopolitical stage, optimism for a Russia-Ukraine peace agreement has waned as reports emerged of Russia launching its most significant drone and missile attack on Ukraine in over a month. Additionally, Moscow accused Kyiv of dismissing the possibility of a "lasting and fair settlement." As the week concludes, gold is expected to see minimal change overall.