Gold Surges as Fed Rate Hike Bets Ease
Gold prices hit their highest level in seven weeks as easing Fed rate hike expectations and progress in U.S.-Iran talks reduce inflation concerns, with analysts projecting further gains to $4,890–$5,250 per troy ounce.
YLG Bullion International CEO Paworn Nuwattanathrip said gold's climb this week marks its highest level in nearly seven weeks and strongest daily gain since February, driven by progress in U.S.-Iran talks over reopening the Strait of Hormuz, which has dampened oil prices and reduced expectations of Fed rate hikes in September. CME FedWatch Tool data shows investors have cut odds of a September hike to just 54.5%, down from 60–70% previously.
Markets increasingly believe inflation pressure has eased, signaling gold's downtrend may be ending. However, YLG sees risk of one more dip to $4,000–$3,850 if talks collapse, before a rebound upward. The firm projects medium-term consolidation only into Q2 2025, citing sustained central bank buying—the World Gold Council reported global central banks purchased 289 net tonnes in Q2 2024, up 62% year-on-year, while 45% of surveyed central banks plan to increase holdings over the next 12 months.
YLG's target for the next uptrend is $4,890–$5,250 per troy ounce internationally, or 76,500–82,200 baht per baht-weight domestically (at 33.08 baht per dollar). The firm recently launched dollar-denominated gold trading (Gold Spot) in real-time for 99.99% gold (minimum 1 troy ounce or 1 kilogram) and 96.5% gold (minimum 10 baht-weight) to shield investors from currency fluctuation. Contact YLG via LINE @ylgbullion or phone 02 798 9888.
