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Gold prices soar on rate cuts expectations



Gold prices soared to surpass their levels in late April. The market regained part of the losses recorded during the latest price corrections, buoyed by renewed optimism for potential Federal Reserve interest rate cuts.

This shift in investor sentiment follows the release of US job market data yesterday. The Federal Reserve remains cautious about reducing rates but markets are expecting a first cut in September.

The upcoming inflation data is highly anticipated and will provide further clarity on the state of the US economy. Should this data indicate a downward trend in inflation, it could further enhance the appeal of gold as an investment.

At the same time, geopolitical risks could continue to support gold’s performance although the rapidly changing conditions in the Middle East constitute a source of risks.

Furthermore, recent ETF data highlights a robust demand for gold in Asian markets especially from China, while central banks sustain an interest in the precious metal

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