FX.co ★ Gold Extends Losses

Gold prices declined to approximately $3,730 per ounce on Thursday, continuing a downward trend from recent record highs. This movement comes as financial markets assess the future direction of the Federal Reserve's interest rate policies. Federal Reserve Chair Jerome Powell expressed a cautious stance, highlighting the difficulty of managing persistent inflation alongside a weakening labor market. Within the Fed, opinions are divided: some members anticipate two additional rate reductions this year, while others advocate for a more cautious approach or even support more substantial rate cuts. Additionally, sales of new homes in the U.S. unexpectedly accelerated in August, marking the fastest pace since early 2022. This development has alleviated fears of an economic slowdown, yet it adds complexity to the forecast for further rate cuts. Despite these factors, gold continues to draw support as a safe-haven asset amid geopolitical tensions. NATO has issued a warning to Russia, asserting it will employ "all necessary military and non-military measures" for defense. Concurrently, former President Trump remarked that Ukraine might regain all territories currently controlled by Russia.