YLG Advises Investors to Watch Fed Meeting on April 29, Powell's Final as Chair, as Long-Term Gold Signals Remain Bullish
Gold prices are consolidating ahead of the Fed's April 29 meeting, Powell's last as chair, with analysts warning of near-term pressure if rate cuts are delayed despite long-term bullish signals supported by central bank demand and geopoliti
Gold prices are consolidating in the short term as market uncertainty persists between inflationary pressures and the direction of Federal Reserve policy, according to YLG Bullion International Limited. The firm is urging investors to watch the Fed's policy committee meeting on April 29 at 1:00 AM Bangkok time, notably Jerome Powell's final meeting as Fed Chair before his term ends on May 15. If the Fed signals no rush to cut rates, it will pressure gold prices in the near term due to the lack of benefit from elevated interest rates. However, YLG notes that while gold prices may consolidate through May and June, the long-term trend remains a strong structural bull market, with the firm recommending investors gradually accumulate on price weakness. The outlook depends heavily on the Fed's policy direction. A hawkish stance maintaining high rates longer than expected could push gold lower in the short term, while signals of economic concerns and interest rate cuts would support a recovery toward all-time highs. Key supporting factors for medium to long-term gold include continued central bank purchases, particularly from China, India, and Turkey seeking to reduce dollar dependency, and geopolitical tensions in the Middle East that maintain gold's safe-haven status. Leading financial institutions JP Morgan and UBS project gold could reach $6,200-$6,300 per troy ounce by year-end 2025, reflecting positive long-term market sentiment.
