FX.co ★ Gold Hovers Near Record High

On Wednesday, the price of gold remained stable around $3,760 per ounce, close to its recent peak, as stakeholders assessed commentary from the Federal Reserve. Chairman Powell acknowledged the challenging situation the central bank faces, balancing unexpectedly fast inflation with weak job growth, which raises concerns about the labor market. Powell expressed contentment with the current policy route but noted the possibility of future rate cuts if justified. Financial markets anticipate two more 25 basis point reductions this year, likely in October and December. Investors' focus will shift to the August PCE index, the Fed’s preferred inflation indicator, alongside insights from additional Fed members, to discern future policy directions. Additionally, gold found upward pressure from geopolitical uncertainties, notably NATO's critique of Russia's breach of Estonian airspace, which it characterized as indicative of "increasingly irresponsible behavior," pledging to employ "all necessary military and non-military measures" for defense assurance.