Gold prices have declined, reaching a two-month low, after Federal Reserve Chair Jerome Powell signaled a cautious approach to future interest rate cuts. In a recent speech, Powell emphasized that, despite inflation nearing the Fed’s 2% target, the central bank is not in a hurry to reduce rates, citing the economy’s solid performance.
This stance has led investors to adjust their expectations regarding the pace of monetary easing, resulting in a stronger U.S. dollar and increased Treasury yields. Consequently, gold, which typically benefits from lower interest rates and a weaker dollar, has experienced downward pressure.
Market analysts are now closely monitoring upcoming economic indicators, such as retail sales and employment data, to gauge the Fed’s potential policy moves. The interplay between these economic signals and the Fed’s decisions will likely continue to influence gold prices in the near term.
