top10gamingcryptocurrency| FOMC meeting minutes put down! Is it not impossible for gold to return to this threshold?

Jinshi Data

The medium-and long-term prospects for gold remain constructivetop10gamingcryptocurrencyBut in the short term, bears are likely to be targeting this target...

Before the European market on Thursday, renewed concerns about high interest rates and weakening safe-haven demand weighed on gold prices. Spot gold fell further from record highs and fell below the US$2360 mark for the first time since May 15; copper prices also fell sharply from record highs.

Concerns about a possible rise in the federal funds rate have intensified as Fed minutes showed concerns about sticky inflation.

Minutes of the Federal Reserve's April meeting showed policymakers were increasingly worried about sticky inflation, and some policymakers were open to further rate hikes to reduce inflation, although that seemed unlikely.

Faced with thorny inflation, the Fed is more likely to keep interest rates high for longer, and speeches from several policymakers this week showed the Fed has limited confidence that inflation will reach its 2% target in the short term.

A prolonged period of high interest rates bodes badly for gold and other precious metals as it increasestop10gamingcryptocurrencyThe opportunity cost of investing in these precious metals is discussed.

Tim Waterrer, chief market analyst at KCM Trade, said,"The minutes of the Fed meeting remind investors that interest rate cuts are far from what they will currently consider, and gold prices have been hit. If the dollar keeps rising, gold prices may fall back to support around $2355."

In addition, geopolitical tensions in the Middle East have not deteriorated significantly after the death of the Iranian president, which has also weakened market demand for safe-haven gold.

However, Waterrer added that gold's medium-to long-term prospects remain constructive, but this depends largely on the Fed's next move to cut interest rates rather than raise interest rates. The central bank's gold purchase action remains unchanged.

Traders 'bets suggest the market is increasingly skeptical of the view that the Fed will cut interest rates more than once in 2024, with investors currently predicting a 73% chance of the Fed cutting interest rates before November.

Next, gold traders will pay close attention to the upcoming May U.S. manufacturing and services PMI data. Weak data may raise market hopes for the Federal Reserve to cut interest rates and support gold.

In addition, the Chicago Fed's national activity index, initial jobless claims, new home sales data and Federal Reserve Bostic's speech will also become the focus of market attention.

Everett Millman, chief market analyst at Gainesville Coins, said:

"Whenever gold has such a long and large rise, there will naturally be some profit-taking. Gold prices are expected to consolidate and retest the $2300 level. Delays in interest rate cuts, unabated concerns about a recession, and sell-off by Western investors have also dragged down gold prices."