Gold Prices Near Record Level After Confirmed Rate Cut in September: Gold prices stabilized near their record high after Federal Reserve Chairman Jerome Powell
confirmed expectations that the U.S. central bank would begin cutting interest rates next month.

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Important Economic Indicators

Gold Prices

Chinese Central Bank

From China to the U.S.: Important Economic Indicators Released This Week

This week, U.S. inflation figures will reinforce the reality that long-awaited interest rate cuts are coming soon,
Consumer spending data is seen as a sign that the central bank has managed to keep growth on track.
Economists expect the Core PCE Price Index, the Federal Reserve’s preferred measure of core inflation,
to rise by 0.2% in July for the second consecutive month.
This would increase the annual core inflation rate to 2.1% over three months, slightly above the central bank’s 2% target.
In the report due next Friday, Bloomberg economists expect consumer spending,
unadjusted for price changes, to increase by 0.5%—the most robust rise in four months.

Gold Prices Near Record Level After Confirmed Rate Cut in September

Gold prices stabilized near their record high after Federal Reserve Chairman Jerome Powell
confirmed expectations that the U.S. central bank will begin cutting interest rates next month.
Gold was trading near $2,510 per ounce after rising 1.1% on Friday.
On Friday, Powell stated in Jackson Hole, Wyoming, that “the time has come” to shift to monetary easing.
He also emphasized his intention to prevent a further slowdown in the U.S. labor market.
Lower interest rates typically enhance the appeal of gold, which yields no return, compared to Treasury bonds.
The precious metal’s prices have surged more than 20% this year,
partly due to optimism that the Federal Reserve is nearing the long-awaited pivot toward rate cuts.
Prices have also been supported by demand for safe-haven assets amid rising geopolitical risks
and uncertainty ahead of the U.S. elections in November, as well as central bank and Asian consumer purchases.

The Chinese Central Bank Keeps Interest Rates Unchanged After Bond Surge Warning

The Chinese central bank kept its key interest rate unchanged,

ignoring the bond market frenzy as it sought to support the economy.
The People’s Bank of China maintained the one-year loan prime rate,
the Medium-Term Lending Facility rate, at 2.3%, following a 20 basis point cut in July.
Meanwhile, the central bank withdrew a net 101 billion yuan ($14 billion) from the banking system
this month after 401 billion yuan worth of loans (previously granted to the banking sector) matured on August 15.

Gold Prices Near Record Level After Confirmed Rate Cut in September

Gold Prices Near Record Level After Confirmed Rate Cut in September

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