Gold prices have pulled back to the $2,570s after the release of US Retail Sales data for August. While the data was slightly stronger than expected, it did not significantly impact expectations for a Fed rate cut.
Fed Rate Cut Expectations
The probability of a larger-than-expected rate cut by the Federal Reserve (Fed) at its upcoming meeting remains high, according to the CME FedWatch tool.
Gold’s Bullish Outlook
Analysts remain bullish on the long-term outlook for gold, citing factors such as debt, deficits, demographics, reverse-globalization, AI, and net-zero policies.
Gold Technical Analysis
Gold prices have pulled back from their recent highs, but the overall trend remains bullish. The Relative Strength Index (RSI) is approaching the overbought zone, which could indicate a potential short-term correction. However, the long-term trend remains positive.
