The price of Gold rose to just under $2,470 per troy ounce this morning, approaching the record high of mid-July, boosted by comments made by Fed Chairman Powell on Wednesday evening, Commerzbank’s commodity analyst Carsten Fritsch notes.

Market expects a first Fed rate cut in September

“The price of Gold rose to just under $2,470 per troy ounce this morning, approaching the record high of mid-July. The price was boosted by comments made by Fed Chairman Powell on Wednesday evening, who opened the door to a rate cut in September at the press conference following the Fed meeting. According to Fed Funds Futures, the market now firmly expects a first rate cut in September.”

“After the weak US data yesterday, the market even started to price in a rate cut of 50 basis points, although Powell had actually ruled this out at the press conference. Today's US labor market data should therefore be interesting, especially as Powell had shifted the Fed's focus more towards the labor market on Wednesday. If the data is disappointing, interest rate speculation could intensify and the Gold price could rise further.”